Taiwan to further study investment in China

Dec.14, 2001 – Taipei, Taiwan – A Taiwan Ministry of Economic Affairs task force has concluded that a decision to lift the ban on semiconductor manufacturing investments in China needs further study.

The task force will meet within two weeks with industry and government officials to discuss the issue again, reported Dow Jones.

The ministry said a further review is necessary because chip investments involve large sums of money and the sector is Taiwan’s most important industry. Proper risk management of investment and capital in this area needs to be considered.

The task force met this week, in part to decide whether to loosen restrictions on Taiwanese chipmaking investments in China. However, some observers had expected there would be a delay in the decision.

The task force did recommend easing the investment ban involving the assembly of LCDs on the mainland because of that sector’s low technology and the fact that it isn’t labor intensive.

However, the task force didn’t recommend lifting the ban on the upstream and midstream manufacturing of glass panels for LCDs.

The task force’s decisions must be submitted to the cabinet for approval.

On the recommendation of the task force, the cabinet recently decided to lift the ban on notebook manufacturing in China.


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