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Taiwan relaxes investment rules on chipmakers

Companies allowed to use more advanced 0.18 micron technology in PRC, MOEA says

Taiwan relaxes investment rules on chipmakers

The Cabinet announced yesterday its decision to further liberalize the policy relating to Taiwan's investment in 8-inch wafer plants in China by allowing local companies to transfer technology for manufacturing 0.18-micron circuits in China.
A spokesman for Taiwan's largest chip maker, the Taiwan Semiconductor Manufacturing Corp., welcomed the decision, saying that it would greatly enhance the TSMC's competitiveness in China. TSMC first applied to set up an 8-inch wafer plant in China to produce 0.18 micro circuits in January of 2005.
The Mainland Affairs Council and Ministry of Economic Affairs announced the government's decision simultaneously, saying that the new measure would apply only to those companies that have set up wafer plants in China and that such investments involve only technological transfers between the parent companies in Taiwan and their plants in China.
MAC Vice Chairman Liu Te-hsun said the move was aimed at ensuring that Taiwan's businesses would be able to compete effectively with other nations in mainland China, and at maintaining Taiwan's leading international position in the wafer manufacturing industry.
Liu said he believes that Taiwan's semiconductor manufacturing industries will benefit from the opening. However, he added, those industries that intend to produce circuits smaller than 0.18 micron in China should still apply to the MOEA for approval in advance.
The government decided to allow 0.18 micron circuits to be produced in China because Taiwan's semiconductor industry is highly competitive globally, considering the fact that it has ten 12-inch wafer plans, or a fourth of the total number of such plants in the word, Liu said.
"We are confident that the new policy will help significantly upgrade the industries in Taiwan. We will work to develop Taiwan as a 12-inch wafer fabrication center, an IC design center, and a research and production center for the semiconductor and information industries," Liu said.
Kung Ming-hsin, deputy director of the Taiwan Institute for Economic Research, suggested that the authorities concerned should make comprehensive plans when considering Taiwan's investment in high-tech industries on the Chinese mainland, including wafer plants, with the objectives of ensuring that no core technologies, personnel, and capital will be drained off, and Taiwan's current advantages in high-tech industries will be maintained.
In addition to efficiently implementing regulations governing such investments, the government should draft laws to protect science and technology, formulate regulations on high-tech Taiwanese personnel working in China, pre-examine the financial conditions of companies investing in China, and establish a monitoring mechanism, Kung said.


Updated : 2021-04-22 22:03 GMT+08:00