Taiwan Makes Moves for More China Investments

By Colleen Taylor -- Electronic News, 11/15/2006

Taiwan is set to finalize a plan by the end of 2006 that would allow its chipmakers to use 0.18-micron manufacturing technology in China.

In addition, according to non-profit association the U.S.-Taiwan Business Council, Taiwan's Ministry of Economic Affairs' (MOEA) Investment Commission is also planning to approve applications by Taiwan-based Powerchip Semiconductor and ProMOS Technologies to move 8-inch wafer fabs to the mainland.

"Taiwan's willingness to relax its China investment regulations continues an incremental approach to liberalization of Taiwan's cross-Strait technology relationship with China," U.S.-Taiwan Business Council President Rupert Hammond-Chambers said in a statement Tuesday. "The council supports these steps, as they will strengthen Taiwan's competitiveness and increase the attractiveness of Taiwan companies to America's technology community."

This is not the first time this year that Taiwan has reportedly announced plans to work more with China. In April, Taiwan announced that it would allow packaging and testing companies to invest in China, according to the council. However, the council said in yesterday's statement, Taiwan "has yet to grant any licenses for such investment."