Taiwan May Ease Rules on Chip Investments in China

Alan Patterson, EETimes
8/18/2015 09:47 AM EDT

TAIPEI — The Taiwan government may soon ease regulations to help local chipmakers get a bigger slice of the semiconductor business in China.

The draft regulations would let Taiwan chipmakers have sole ownership of any new 12-inch fabs that they establish in China, which some Taiwanese companies see as crucial to protecting their proprietary technology.

The Taiwan government has restricted investments in China on concerns that the island will lose jobs and technology to its political rival. Yet Taiwan’s chipmakers, which account for about a fifth of the world’s production, have different concerns. They’ve pointed to the need to tap into China’s huge chip market, which is expected to lead global growth during the rest of this decade.

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