Taiwan Plans To Remove Limits On Mainland Semiconductor Investment

According to reports in Taiwanese local media, Taiwan's economic agencies will begin in July 2009 to discuss possibilities to lift limits on Taiwanese companies' investments in mainland China's high-end semiconductor industry.

After the amendment, investments in mainland industries, including 12-inch chip factories, medium and large-sized panels, IC design and high-end beta testing, will be available for companies in Taiwan.

According to news posted on Sina.com, Taiwanese chip companies that want to invest in the mainland should observe the international standards of the Wassenar Arrangement. By then, 12-inch chip factories with process of over 0.18 micron will be able to enter the Chinese mainland, but the core technology should be maintained in Taiwan.

The reports quoted an anonymous officer by saying that the United States has already approved the setting up of Intel's 90 nanometer 12-inch chip factory in Dalian. In the future, Taiwan will also open the export of semiconductor equipment, but a specific team will be established to examine each investment before approval.

The officer said that apart from the three wafer factories of Taiwan Semiconductor Manufacturing Company, ProMOS Technologies, and Powerchip Semiconductor Corporation, the fourth over 0.18 micron 12-inch chip factory will be approved soon.

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