May 12, 2008 – Taiwan chip assembler Advanced Semiconductor Engineering and memory firm ProMOS are being wooed by mainland Chinese officials to build a 300mm wafer fab onshore, according to the Taiwan Economic News, citing mainland press reports.

The Taiwan firm recently asked for more government support to expand its facilities on the mainland, at the same time Taiwan is approving four other firms’ cross-strait expansions (Lingsen Precision Industries, Kyec Yuan Electronics, Siguard Microelectronics, and Siliconware Precision Industries).

Authorities in China are said to be opening wallets to spend up to $20B for three 300mm fabs in a 30 sq. km industrial park in Chongqing, Sichuan province, in efforts to develop a chipmaking industry in this western location. The park, first proposed in Aug. 2005, is hoped to rake in sales of roughly ~$7B by 2010, with investments of $5B, the paper notes.

Mainland authorities recently pitched their plans to ASE and ProMOS, with ASE committing $1B for a 300mm fab in the park — though the paper notes that ASE has denied these reports. ProMOS is said to be likely to co-invest in a 300mm fab with Japanese partner Elpida Memory, but also has denied these reports. Mainland media also claim that ASE wants to move an online factory in Shenzhen, Guangdong province, to the park.