September 11, 2006 – Powerchip Semiconductor Corp. and Promos Technologies Inc. have notified the Taiwanese government of their intentions to invest in chipmaking facilities in mainland China capable of 0.18-micron process technologies, beyond the government’s existing policy of 0.25-micron factory investments, according to the Taiwan Economic News.

The two companies applied for investments in 0.25-micron factories in China in 2004 and 2005, respectively, but the applications have yet to be reviewed, and the companies plan to revise the plans toward the more leading-edge technology, according to Vice Economic Minister Y.S. Shih.

Since 2002 when the Taiwan government began allowing 0.25-micron factory investments from Taiwan chip companies in China, only TSMC has received the green light for such investments, although the paper noted that TSMC recently suggested the restrictions should be extended to open 0.18-micron investments to support competition.