Issue



Eyes on the Bauhinia


11/01/1997







Eyes on the Bauhinia

Maggie Y.M. Lee, Senior Technical Editor

China is the largest emerging market in the semiconductor industry, while Taiwan has witnessed phenomenal and continuous growth in its industrial sector. Armed with substantial funding and large technical and labor forces, the Chinese community as a whole plays a dominant role in the industry. The general well-being of the region hinges on the smooth transition of Hong Kong back to Chinese rule.

The author offers a review of the recent economical and political developments in Hong Kong, Taiwan, and China, and the ramifications for the semiconductor industry. At present, Hong Kong acts as a go-between in China and Taiwan`s joint ventures with each other or with foreign companies. Further growth in the region`s semiconductor industry will depend on continued development in cross-straits relationships.

The attitude of Chinese people around the world to the situation in Hong Kong, Taiwan, and mainland China is exemplified by the position of the patriarch in an extended family. There is nothing more rewarding to the head of a household than reuniting everybody, young and old, in the ancestral home and living together happily ever after.

For years, China`s dream has been to return its prodigal sons to their motherland. This dream partially came true with the handover of Hong Kong from Great Britain to Communist China on July 1, 1997. Under the governance of "one country, two systems," China swears Hong Kong will serve as a model for an eventual reunification with Taiwan, long termed a "renegade province."

One country, how many systems?

At the 15th National Congress of the Communist Party of China (CPC) in September, China reiterated that holding steadfast to the principle of the one-China policy remains the key to improving cross-straits relationships. Peaceful reunification and one country, two systems policies toward Taiwan, a CPC spokesman said, are consistent with its government and the course would not change.

With the 1999 return of the Portuguese colony, Macau, will China have to change the motto to "one country, three systems?" After a hypothetical merger with Taiwan, would a fully united China be, "one country, four systems?" (See figure on p. S16.) Just how China will practice its free-market brand of "socialism with a Chinese character" across several economies, while simultaneously answering President Jiang Zemin`s call to "extend socialist democracy" remains to be seen.

China has been very explicit in its intentions concerning reunification with Taiwan, a region that is now one of the richest in Asia. The people on the island, however, think otherwise. Cross-straits relationships have been tense in the last few years, and the focus of dialogue between China and the US. Polls [1] quoted by Taiwanese newpapers reported the majority of adults interviewed favored maintaining Taiwan`s political status quo for the time being. While some preferred independence either immediately or in the near future, others prefer unification with China when the economic and political structures of China and Taiwan are more in tune with each other.

Many Taiwanese want to live under the existing conditions in Taiwan and reject steps toward unification until a free and democratic system is implemented in the mainland. In an interview with the US-based Cable News Network, Taiwan`s VP and Premier Lien Chan declared that national unification should come under the formula of "one country, one good system."

Economic developments

In their 1997 survey and annual meeting report [2, 3] of the world`s economies, both the World Bank and the International Monetary Fund (IMF) rated Hong Kong, Taiwan, and mainland China as top players (Table 1). Beginning with the May 1997 issue of IMF`s World Economic Outlook [4], the newly industrialized economies in Asia (Hong Kong, Taiwan, South Korea, and Singapore) together with Israel are now considered as "advanced economies," joining the industrial countries that included the Group of Seven. The reclassification reflects advances in per capita income levels, well-developed financial markets, high degrees of financial intermediation, and diversified economic structures with relatively large and rapidly growing service sectors.

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a) Map of the Asia-Pacific region. In July 1997, Great Britain handed Hong Kong back to China. Under the principle of "one country, two systems," Hong Kong will remain as a Special Administrative Region (SAR) of China. Macau is slated for return to Chinese rule in 1999. Taiwan, an island territory, is located 80 miles across the Taiwan Straits from the southwestern coast of mainland China. b) Map of Hong Kong, located at the southern tip of China. Since opening to outside investment, Shenzhen, north of the Hong Kong-China border, has experienced remarkable growth from a shanty border town to a Special Economic Zone of China with skyscrapers, glitzy shopping malls, and a thriving electronics industry.

While mainland China remains in the category of "developing economies," the World Bank reported that China is maintaining its economic growth, backed by a credit of US$2.5-3.0 billion. The average economic growth throughout the mainland over the next 25 years will be 6.5%. In particular, the IMF forecasted a growth of 9.5% in 1997, after the unprecedented 9.7% expansion in 1996.

The World Bank and international community hailed President Jiang`s victory at the 15th National Congress and his calls for economic reforms in China. Privatization of state-owned enterprises tops his agenda and investors are urged to return to the Chinese market. After its latest range of tariff cuts in an effort to win a place in the World Trade Organization (WTO), China vows to open its wholesale and retail sector to foreign investments to comply with WTO requirements. Officials have refused to set a date, but remarked the process would be gradual to allow domestic companies to catch up with foreign competitors. The world is watching Jiang`s every move. His future in the CPC relies on the success of these reforms and smooth handling of Hong Kong will be a critical factor.

Afterglow of the Hong Kong-China handover

Almost three months after the handover celebrations, life continues as before. Hong Kong has assumed the national anthem, national flag, capital, and calendar of China, as well as the new flag of the Hong Kong Special Administration Region (HKSAR). The market continues to bustle with the usual short-term ups and downs in the stock exchange. Businesses appear to have shrugged off any worries regarding Chinese rule.

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Hong Kong chief executive Tung Chee-Hwa, the shipping tycoon picked by the Chinese government, reports directly to Beijing. Whether or not China`s reunification scheme works out smoothly depends on a smooth transition of the island territory from a free-wheeling capital to a Special Administrative Region (SAR) of China. Under the new Basic Law, Hong Kong is allowed to retain its capitalist system for at least 50 years. It maintains its own currency (currently pegged to the US dollar at US$1 = HK$7.7) and monetary authority. The government does not have to turn over its assets and reserves to China and the exchange fund will be managed and controlled in Hong Kong.

Many think China is testing the waters, hoping Tung can sell the Hong Kong model to Taiwan. To many, Tung has the credentials to do this and is the Chinese equivalent of the American CEO-turned-politician. While definitely pro-Beijing, Tung is an ex-magnate with extensive contacts in Taiwan. "Chee-Hwa" means "build China" and as Hong Kong`s leader, Tung has been given the opportunity to live up to his name. Already, he has obtained a strong vote of confidence from Chinese Premier Li Peng, who assured Hong Kong its autonomy and Tung`s government noninterference by Beijing. So far, Beijing has stood by its two-systems principle and appears to continue to do so.

Hong Kong-Taiwan-China trade: A three-way street.

Hong Kong is the stepping stone between Taiwan and China`s economies. World Bank 1995 statistics showed that Taiwan ranked third in market share (11%) in mainland China, trailing only Japan (22%) and the US (12%). In 1995, Hong Kong was the lead importer (24%) of mainland China`s total exports, followed by Japan (19%) and the US (17%). It is also Taiwan`s third largest trading partner and second largest (21.7% in 1994) export market [5].

In the first half of 1997, mainland China`s trade with Hong Kong amounted to US$23 billion, 16% of China`s total external trade [5]. New reports [6, 7] predict that China`s trade with Hong Kong will jump more than 20%, exceeding US$40 billion by the end of the year. Hong Kong is China`s most important entrep?t; up to 40% (including re-exports to and from China) of China`s foreign trade and 50% of its exports are handled via Hong Kong [5]. Over half of all container shipments from Taiwan pass through Hong Kong for destinations in mainland China or other parts of the world. As much as 70% of Taiwan`s exports to Hong Kong are shipped onward into the mainland, and many of the 1.9 million Taiwanese visitors arriving in Hong Kong are bound for the mainland.

Hong Kong: A trade and financial center

At first glance, a growth rate >5% and unemployment < 3% seem to be admirable statistics. Compared to other Asian Tiger economies - Singapore, Taiwan, and South Korea - however, the 5% growth may not be sustainable, since Hong Kong has been losing manufacturing jobs to southern China since the 1980s. Coupled with exorbitant real estate prices (downtown office space costs US$1200/sq. yd. and modest apartments rent for US$3000 (for 400 sq. ft.) to US$8000/month (for 1000 sq. ft.), Hong Kong may well lose its competitive edge in industry.

It appears, however, that the gradual move out of the manufacturing sector is a deliberate decision on Hong Kong`s part. Long established as an international port as well as an information, trade, and financial center, Hong Kong was for the longest time the world`s most open market, with the lowest taxes in the developed world. It is also a short trip from major cities such as Taipei, Tokyo, Singapore, Frankfurt, Geneva, and most importantly, mainland China, the world`s largest and fastest growing market and labor force. As China gradually opened up its economy to foreign investment in the 1980s, many electronics and assembly/packaging companies began moving their labor-intensive production plants to China, maintaining operation headquarters in Hong Kong [8].

Hong Kong`s new technology focus. Until recently, there were only two accredited universities in Hong Kong: the Chinese University of Hong Kong and the University of Hong Kong. Competition for admission into the two universities was intense and, for many years, parents who could afford the expenses sent their children overseas for higher education. Families who were concerned about the political and economic future of Hong Kong emigrated en masse to North America and Australia. The brain drain situation left the region a relative cultural desert.

That all changed in the late `80s and early `90s. As the US and Canada dove into their recessions, Hong Kong grew into an economic power house. According to the International Monetary Fund and the Hong Kong Government Information Services Department, Hong Kong has no external debts and 1996 statistics [9] showed that Hong Kong has become:

 one of the region`s richest, with both per capita income and per capita GDP of US$24,500;

 the world`s seventh largest trading entity and seventh largest stock market

 Asia`s second largest stock market in terms of market capitalization after Japan;

 the second most competitive economy in the world after Singapore;

 the world`s fifth largest banking center for financial transactions;

 the fifth largest foreign exchange market in terms of average daily turnover (>US$90 billion. The foreign exchange reserve at the end of May 1997 was US$66.6 billion, the world`s seventh largest.)

 the world`s fourth leading source of foreign direct investment; and

 the world`s busiest container port with the third busiest international airport and second busiest volume of international cargo handled.

About ten years ago, the Hong Kong government foresaw the need for an educational institution to lead the way in areas of science and technology vital to the territory`s economic future. In 1986, it established a committee to create a new university, and the Hong Kong University of Science and Technology (HKUST) officially opened in 1991. Its president, Chia-Wei Woo, served as president of San Francisco State University until 1988, and was the first person of Chinese descent ever appointed to head a major American university.

A physicist, Woo was designated HKUST president in 1987. His return to Hong Kong in 1988 led a new influx of science professionals into the region. Since then, HKUST has actively recruited distinguished scholars worldwide. The latest technologies and state-of-the-art equipment and computer networks in the new facilities on campus prove to be a major attraction to both students and faculty alike. The shortage of research funds in the US in the last few years helped create the push for scientists at universities, corporate R&D, and national laboratories to look for opportunities overseas.

At present, a professor in the sciences or engineering in Hong Kong probably has the highest salary in worldwide academia. An assistant professor`s minimum salary is US$68,000, while a full professor earns a minimum of $140,000/year, all with enviable housing benefits provided by the university at a rate of 7.5% of the basic salary.

Accreditation of several other colleges and polytechnics in the last 10 years accounts for seven other new institutions of learning in Hong Kong. The traditionally competitive education system had long graduated more qualified high school students than the older universities could accommodate. Many of these bright young students are now admitted into the new institutes and have raised the educational level of the community.

Yet with the all its resources, brain power, and technical capabilities, Hong Kong remains inactive in semiconductor fabrication. Engineering departments still lose out to the financial sector and students are relatively reluctant to enter the technical professions. Long used to funding projects in China and playing as its window to the outside world, Hong Kong continues to act as a deal maker and financial center for semiconductor companies investing in Asia. Its direct impact on the industry is limited to its role as a liason for Taiwanese and other foreign companies. The transition to Chinese rule has eased the distance China kept from foreign investors, and Hong Kong`s reputation as a free economy with expertise in banking and finances should continue to attract funding into the mainland.

Mosel Vitelic`s 150-mm wafer fab in Taipo, Hong Kong, is a fine example of the small role Hong Kong plays in semiconductor fabrication technology. It experienced difficulty obtaining long-term work permits for engineers trained in China and had trouble keeping experienced native Hong Kong engineers from either emigrating overseas or moving on to more immediately profitable ventures. Since original construction of the plant in 1989, it has lacked continuous investment and the local engineering infrastructure could not keep up with the technology. The technology has been and will be fixed to the 1.2-?m device generation and the plant now limits itself to the production of consumer electronic products.

Electronics industry in Hong Kong. Hong Kong`s electronics industry is its largest export component, accounting for 28% of total exports in 1996. Foreign investment is also highest in electronics, amounting to 31% of the total in 1995 [5]. Apart from the numerous smaller electronic factories employing an average of 40 people, there are currently some 70 electronics manufacturers listed in the Hong Kong Stock Exchange.

Most finished products are consumer electronics and production takes place either in Hong Kong or at subsidiary facilities in China, Malaysia, and Thailand that boast lower labor and production costs. Many of Hong Kong`s overseas production plants are equipped with advanced equipment, such as surface mount devices, auto-insertion machines, chip-on-board machines, multifunction acoustic systems, multifunction test sets, and in-circuit testers [5].

The Hong Kong government provides infrastructure and development support to the industry though several venues. For example, the Hong Kong Electronic Industries Association and the Hong Kong Government Industry Department joined forces to publish the Roadmap for Electronics Packaging and Assembly for Hong Kong in 1996.

Taiwan: There`s no place like home

Compared to Hong Kong, Taiwan attracts a different kind of entrepreneur. The island as a whole has shown immense grace under pressure. In the last few years, Taiwan has been troubled by upheavals between opposing political parties, assassinations, and kidnappings. Destruction from typhoons has at times dampened the spirit of the economy. Taiwan is a self-sufficient island with rich resources, and unlike Hong Kong, does not have to depend on China for its water supply and food crops.

A recent survey [10] showed that Taipei is the most affluent city in Southeast Asia, followed by Hong Kong and Singapore. (The other cities included Bangkok, Manila, Jakarta, and Kuala Lumpur.) It also showed that 84% of Hong Kong`s affluent population do not have a university education. In contrast, Taiwan has both a government and a population that emphasizes the importance of education in the region`s growth and development. In 1994, the Taiwanese government allotted 19.1% (US$13.7 billion, second to defense expenses) of its budget to education. In 1993, the education budget amounted to US$15.5 billion, 40.5% of which went to compulsory elementary and junior high school education, 6.4% to senior high school education, 7% to vocational education, 6% to junior college education and 15.8% to university and college education [11].

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The Ministry of Economic Affairs announced the surge in production of high-technology goods raised Taiwan`s industrial production index by 7.35% to 134.42 in August 1997, compared to the same period in 1996 [12]. Production of computer-related and electronics items rose 20.95% in August from a year ago, contributing to a 7.55% increase in output for the manufacturing sector [12]. These figures compare favorably with the overall economic growth rate of roughly 6% in the last three years. According to SEMI (Table 2), the world`s investment in front-end equipment totaled US$9.419 billion in the first six months of 1997, with Taiwan contributing approximately 14% of the investment [13].

With the rapid growth in Taiwan`s industrial sector, many Taiwanese who settled abroad in the last few decades have come to realize that there is no place like home. Unlike their fast-paced neighbors in Hong Kong who embraced the art of cellular communications as early as the 1980s, and who prospered through investment or small entrepreneurial ventures, many of Taiwan`s Chinese-American and expatriate work force come from professional and technical backgrounds. A large number of them worked in the Silicon Valley and R&D research facilities of companies such as IBM, Exxon, AT&T, Bell Labs, and NEC. New research facilities at universities, including a synchrotron laboratory and the establishment of the Science-based Industrial Parks under the governance of the National Science Council, serve as a continuous pull for overseas scientists.

Taiwan continues fab investments. Science and technology have always led the path toward industrialization in Taiwan. The establishment of the Science-based Industrial Parks in Hsinchu and Tainan are excellent examples of the importance of continuous investment in the semiconductor industry. As Taiwanese chip sales and the capital equipment market increased to US$8.5 billion and US$2.5 billion, respectively, in 1996, the island continued to attract more and more engineers and skilled labor into the new facilities being constructed [11, 14, 15]. According to SEMI, there are currently 11 device manufacturers on the island with nearly 40 new fabs scheduled to come on line by 1999. Recent investments include a Taiwan Semiconductor Manufacturing Co. US$15 billion project to construct five 200-mm and one 300-mm wafer fab [16].

The industrial parks in Hsinchu and Tainan are supported by residential areas, dormitories, public transportation, schools (both Chinese and bilingual), and networks of highways built especially for employees and their families. The infrastructure also supports a local economy and service sector, creating new jobs for the local Taiwanese population [15]. Some employee benefits may also include generous stock options, which have been funding the IC industry in Taiwan, an extra incentive to make sure the industry thrives. In general, members of the semiconductor industry have high confidence in the future of Taiwan and have continued to invest both time and money into the region.

The attractive working and living conditions have generated a reverse brain drain, inducing many well-educated Taiwanese who settled overseas to return to their homeland. For many, the security of a foreign passport or a green card serves as a cushion against potential social, political, or economic disorder in the event cross-straits relationships come to a standstill.

For others, strong family and social ties with Taiwan provide even stronger justification for relocating to the island. Those with young children want to expose them to their heritage and cultivate relationships with aging parents. The glass ceiling in corporate America prompted other native Taiwanese to move back where opportunities for advancement in the semiconductor industry are numerous. In an era where jobs are no longer permanent in the US, the sense of belonging and relative job satisfaction reported by employees in Taiwan prove to be another deciding factor.

China: The fastest growing economy

As recently as 20 years ago, China was one of the world`s poorest countries, with 80% of the population earning less than US$1 a day and illiteracy among two-thirds of its adults. In 1978, after years of state control of all productive assets, Deng Xiaoping launched a major economic reform program, lifting 200 million people out of absolute rural poverty. It saw an average GPD growth rate of 9.3%/year and in some peak years, the economy grew more than 13%. Illiteracy has fallen to below 10% and per capita income has nearly quadrupled in the last 15 years. Consumption has more than doubled and the poverty rate has declined by 60% [17, 18].

Capital investment of nearly 7%/year and productivity increase of 3.9%/year over 1979- 1994, together with rapid integration with the world economy [18] turned China into the tenth largest trading nation, attracting more foreign direct investment than any other country except the US. In 1996, the first year of China`s Ninth Five-Year-Plan (1996-2000), growth was 9.5% [2, 3]. The reform by stages implemented by Beijing helped the mainland avoid the collapse of the economic and political systems seen in other now-formerly-communist countries.

The World Bank predicts that at an average economic growth of 6.5%/year, China would be able to lift 270 million people from poverty by the year 2020. At that time, it could be shipping about 10% of world exports, ahead of Japan but behind North America and the European Union. The World Bank 1997 report also forecasts that China will emerge as the world`s largest trading nation with per capita income of over US$10,000.

Realizing the success of market-oriented reforms to introduce rural enterprises and small private businesses, the 15th CPC Congress endorsed President Jiang`s plans to overhaul China`s state-owned enterprises. The plans will focus on 1000 key state ("lifeblood") industries, while loosening controls on the remainder of the 300,000 staggering state-owned enterprises, experimenting with different forms of ownership involving stock flotation in China and Hong Kong, mergers, and bankruptcy. Some in the international community hailed Jiang`s reforms as China`s "new leap forward" [7], after the CCP Great Leap Forward economic campaign in 1958.

The World Bank warned that the challenges ahead of China include unemployment in light of the dismantling of the state sector, retraining of laid-off state employees, growing inequality in the distribution of wealth, inflation (it peaked at 20-25% in 1994), irrecoverable credits (offered as loans from state-run banks to state-owned enterprises in the past), deterioration of the environment, and lack of law and order. Other problems with uneven privatization and reform can also lead to infrastructure bottlenecks and tax defaults. Its one-child policy is also a potential time bomb as an aging population places an unsustainable burden [7] on the working generation and drains the nation`s pension system. Moreover, as more and more young people grow up in a generation that knows few siblings, the social implications of parents indulging each family`s only child are worrisome.

China`s electronics output. During 1990-1995, China`s Eighth Five-Year Plan, its electronics industry grew rapidly in terms of production capacity, technological advances, output, and international trade volume [19]. After a 25% growth from 1994, its total output in 1995 reached US$30 billion, with $17 billion in exports. In 1995, China also experienced a trade surplus in the electronics industry for the first time [19].

Lacking the capital required for industrial ventures, China welcomes foreign investment [20]. Most of the major new facilities are partially or wholly owned by foreign chip manufacturers such as the Matsushita joint venture in Shanghai, the STS Microelectronics joint venture with SGS-Thomson in Shenzhen, the ASMC foundry in collaboration with Philips and Nortel in Shanghai, Samsung Electronics` assembly and test facility in Suzhou, Motorola (China) Electronics` submicron wafer fab in Tianjin, Harris Semiconductor`s test and assembly facility in Suzhou, and the Intel test and assembly facility near Shanghai.

With an investment of US$1.2 billion, the Ministry of Electronics Industry sponsors Project 909, including several IC design companies and a 200-mm, single-wafer manufacturing facility using 0.5-?m design rules, with a production capacity of 20,000 wafers/month [21]. Project 909 is expected to help China reach its goals in the microelectronics industry as part of the Ninth Five-Year Plan [19].

The SEMI China Trade Mission at the end of October coincided with President Jiang`s visit to the US. The trip through the US was the first of its kind since Deng Xiaoping visited in 1979, shortly after establishing diplomatic ties with Washington. Outside of his meetings with President Clinton, Jiang met with members of industry, commerce, and educational institutions. The simultaneous SEMI mission included visits with Hong Kong government officials as well as tours of semiconductor facilities in Hong Kong, Shenzhen, Shanghai, and Suzhou. While Jiang and the delegates of SEMI did not cross paths, these visits should improve Sino-American relationships and lay grounds for further joint ventures in the semiconductor industry.

Conclusion

Both China and Taiwan invest heavily in Hong Kong. Many Taiwanese and Chinese companies active in Hong Kong are mainly engaged in cross-straits business. As their investments in each other`s economies expand, Hong Kong`s role as an intermediary becomes increasingly important. The governments in both China and Taiwan are strongly aware of the economic pressure they have on political relations with each other and the international community. Economic prowess is a matter of national pride and the debate of "one China" a matter of national identity. As economic integration among Hong Kong, Taiwan, and China steadily progresses, prosperity and "democracy" (socialist or democratic) under peaceful circumstances should remain the main goal of all Chinese involved.

Acknowledgment

The author would like to thank Ed Korczynski of Solid State Technology, Alan Jung of SEMI Asia, Thomas Chang of Mosel Vitelic Inc., Craig Addison of Mathews and Clark, Asia, K. Wang and L.S. Tung of the Science-based Industrial Park Administration, Taiwan, and Michael Pecht of the CALCE Electronic Packaging Research Center, University of Maryland, for their comments.

Southeast Asia financial market crises

This summer, Thailand led a series of currency and stock market crises in southeast Asia. The Thai baht, the Indonesian rupiah, the Philippino peso, and the Malaysian ringgit lost more than a quarter of their value and the currency exchange system practically collapsed.

Some blamed the breakdown of Thailand`s banking system on excessive borrowing from foreign banks. Many of these loans poured into the Thai economy, fueling an artificial boom that turned to bust. Analysts quoted by Singapore newspapers pointed out that Thailand should have adjusted its economic policies instead of walling in its financial sector. These crises serve as lessons for other countries, such as China, that are just privatizing state sectors and will soon require funding from foreign banks. It will be a while before investors can regain confidence in Asian economies.

In the midst of the currency crisis, the Taiwanese dollar (NT$) fell against the US dollar and Taiwan`s stock index dropped past the 9000-point support level on September 15. The financial troubles in Southeast Asia led to serious losses among foreign investors, who started selling their Taiwanese shares to make up for the lost revenue. President Lee commented to reporters the next day that it was a good time for investors to start buying shares. He added that the rise and fall of the stock index is a natural progression and Taiwan`s economy is fundamentally strong.

Lee`s comments helped boost general morale, and share prices rebounded sharply on September 17, especially in the high-tech sector. According to the China Economic News Service, the weighted index gained 155.53 points (1.74%) by the end of the day. In particular, high-technology shares, which had been the primary losers in recent trading, climbed 4.89%. The first 10 companies listed with the largest turnovers included United Microelectronics Co., Macronix International, Mosel Vitelic Inc., ACER, Winbond Electronics, and Taiwan Semiconductor Manufacturing Company. The strongest players were trading at 34-40 times of this year`s earnings.

Local reports from the China Economic News Service [1] and South China Morning Post [2] were skeptical of the longevity of the phenomenon, mainly because the stock market has been under a correction phase, which is expected to continue. Some analysts cautioned against this kind of "moral persuasion" from officials [1], which is not unlike Malaysian Prime Minister Mahathir Mohamad`s roadshow to woo investors back after the recent market meltdown [3]. Their roles are normally undertaken by the stockbroking sector and their comments are not necessarily reflective of market expertise.n

References

1. News reports, China Economics News Service, Taiwan, Sept., 1997.

2. News reports, South China Morning Post, Hong Kong, Sept. 1997.

3. News reports, Singapore Business Times, Singapore, Sept. 1997.

References

1. Telephone surveys, China Credit Information Service (CCIS), Mainland Affairs Council (MAC), Taiwan, 1996, 1997.

2. Annual Report 1997, International Monetary Fund, Washington, DC, 1997.

3. 1997 Annual Meetings, World Bank Group Issue Brief, World Bank, Washington, DC, 1997.

4. World Economic Outlook, World Bank, Washington, DC, May 1997.

5. Hong Kong Trade Development Council, 1997.

6. News reports, South China Morning Post, Hong Kong, Sept. 1997.

7. News reports, Singapore Business Times, Singapore, Sept. 1997.

8. J. Dodsworth, D. Mihaljek, "Hong Kong, China," Occasional Paper, No. 152, International Monetary Fund, Washington, DC, Aug. 1997.

9. Information Services Department, Hong Kong government (www.info.gov.hk).

10. Survey, Asia Market Intelligence (AMI), Hong Kong, May-Sept., 1997.

11. C. Lee, M. Pecht, The Taiwan Electronics Industry, CRC Press, Boca Raton, FL, 1997.

12. Ministry of Economic Affairs, Taiwan, Republic of China. Sept. 1997.

13. SEMI market statistics.

14. E. Korczynski, "ERSO`s Children Grow Up," Solid State Technology, pp. S14- S24, Feb. 1997.

15. M.Y.M. Lee, "Taiwan`s Tainan Soon Ready for Fabs," Solid State Technology, p. 42, April 1997.

16. Wafer News, Vol. 4.15, April 21, 1997.

17. Z. Hu, M. Khan, "Why Is China Growing So Fast?" Economic Issues, No. 8, Working Paper, No. 96/75, International Monetary Fund, Washington, DC, 1997.

18. 1997 Annual Meetings, World Bank Group Country Brief, World Bank, Washington, DC, 1997.

19. E. Schumann, "Market Focus: China," Channel Magazine, Feb. 1997.

20. "Q&A: Channel Newsmaker," Channel Magazine, Feb. 1997.

21. E. Schumann, "China`s Bid to Join the Submicron Era," Solid State Technology, pp. S23- S26, Aug. 1997.

MAGGIE Y.M. LEE is senior technical editor at Solid State Technology. She can be reached at Ten Tara Blvd., Fifth Floor, Nashua, NH 03062; e-mail [email protected].