Feeds

Taiwan fabs given go ahead for China ventures

Big strings attached

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

Taiwan's chip vendors are to be allowed to invest in silicon factories on the Chinese mainland, but only after if their domestic factories are brought up to the state of the art.

Last week, Taiwanese premier Yu Shyi-kun said that the government had decided to liberalize "small scale and low level investments" on the mainland by Taiwanese companies. Initially, investment will be based around "used wafer manufacturing equipment (including 8 inch and below)." Investment in new equipment will be discussed after two years.

Before being allowed to invest in the mainland, however, manufacturers will have to have completed construction of their 12 inch wafers foundries and brought those plants to stable levels of basic production. The onset of 12 inch wafer lines offers much greater economies of scale than 8 inch wafer technology.

The Taiwanese government said it wanted to ensure its chip industry maintained a global perspective and remained competitive, while ensuring the country's core technologies did not flow to the mainland. By holding the carrot of allowing investment in China, a vast potential market with low labor costs, the government encourages domestic manufacturers to upgrade their Taiwanese plants. The government expects relocation to amount to three low level 8 inch plants.

By 2005, it expects more than eight 12 inch plants to be up and running in Taiwan. Thus, mainland production will be "an extremely small percentage" of domestic production.

China is tipped as the next big thing in silicon production. Investment in chip equipment in the country is expected to hit $7bn by 2003. The country's share of Asia Pacific investment in chip plants is expected to increase from 5% last year to 20%.

© ComputerWire.com. All rights reserved.

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.