Aug. 9, 2002 — Taipei, Taiwan — Taiwanese chipmakers, previously prohibited from investing in China, may now apply to make select investments in the mainland starting Monday, Taiwan’s Ministry of Economic Affairs announced.

The announcement follows a move by the local government late March to scrap a ban on Taiwanese semiconductor firms setting up 200mm fabs in China, the island’s political nemesis.

But chipmakers hoping to invest in China must first meet six requirements, first previewed in March, which will take effect Monday.

The key point is that the local chip company must have 300mm fabs that have already been in mass production for at least six consecutive months in Taiwan, the Ministry said. So far, UMC and TSMC are the only chipmakers with 300mm capabilities in Taiwan.

Mass production, according to the ministry’s definition, means the chipmaker’s plant manufacturing process has earned certification from its customers and begun shipments.

Taiwan’s announcement comes at a time of heated relations between China and Taiwan. Taiwanese President Chen Shui-bian recently called for a referendum on indepednence from China, heating a war of words across the straits, as China’s bellicose rhetoric increased, as well.