Currently, Taiwanese firms are restricted from investing in sub-0.25 micron capacity in China. According to a statement issued Tuesday (Nov. 14) by a Taiwan business advocacy group, the Investment Commission of Taiwan's Ministry of Economic Affairs (MOEA) will finalize a plan by the end of the year that would allow its chipmakers to use 0.18-micron in China. Taiwan is planning to approve applications by Powerchip Semiconductor and ProMOS Technologies to move 8-inch wafer fabs to the Chinese mainland, according to the group.

"Taiwan's willingness to relax its China investment regulations continues an incremental approach to liberalization of Taiwan's cross-strait technology relationship with China," said Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council.

Taiwan announced in April that it would allow packaging and testing companies to invest in China. However, according to the U.S.-Taiwan Business Council, Taiwan has yes to grant any licenses for such investment and "questions remain today over the process."

In addition to applauding loosening of Taiwanese investment restrictions in China, the U.S.-Taiwan Business Council encouraged Taiwan to explore further "cross-strait technology liberalization" and recommended that 0.18-micron policy changes be finalized as soon as possible.

By: DocMemory
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