March 21, 2012 – Reuters — Taiwan raised investment ceilings for Chinese investors in liquid crystal displays (LCDs), semiconductors, IC assembly and test, microelectronics production equipment, and metal tool manufacturing.
Mainland China companies still cannot hold controlling stakes in these companies in Taiwan, or appointing managers, the government said. But they can hold more than 10% stakes in local companies. All investments must be approved by Taiwan regulators.
This revision also covers makers of light-emitting diodes (LEDs) and solar cells, opened to Chinese investment for the first time. Also read: 2011 results for Taiwan’s LED makers and packagers
Read the full report on Taiwan’s investment regulation changes from Argin Chang, Faith Hung, Chris Lewis at Reuters at http://www.reuters.com/article/2012/03/20/taiwan-china-investment-idUSL3E8EK0RM20120320
In 2011, Taiwan took over as the world leader for installed capacity of semiconductor manufacturing, with 21% of total capacity.
Taiwan also recently re-elected its leader Ma Ying-jeou of the Kuomintang (KMT) for a second term. Ma is not expected to make any major economic and regulatory reforms, according to the US-Taiwan Business Council.
Last month, Taiwan’s Ministry of the Interior (MOI) relaxed its conditions for granting multiple-entry visas to mainland Chinese, to make it more convenient for mainland Chinese business people to visit Taiwan and promote business opportunities. Once the new measures are implemented, the number of mainland Chinese business people obtaining multiple-entry visas is expected to double from the current 4,191 to more than 8,000 a year.