The core of Taiwan's international competitiveness is its high-tech industry, and this important sector should remain within the country, Lin Hsin-yi (
Conversely, the minister-designate also said that the new government might ease restrictions on high-tech investments in China so as not to deny local businesses the significant opportunities that exist there.
"Taiwanese companies have to understand where their competitiveness lies," said Lin, who was speaking at a round-table discussion hosted by a group of KMT lawmakers.
"High-tech is the core of our competitiveness, and Taiwan shouldn't hastily give away its most important chip," Lin said.
Lin said he was aware that many of Taiwan's IC manufacturing firms were exploring investment opportunities in China, as Taiwanese high-tech know-how is in strong demand there.
To convince companies to keep their core business here in Taiwan, Lin said the new government would have to "improve efficiency, the taxation system and the overall business environment."
But Lin also said that if Taiwanese firms did not provide for China's high-tech needs, other foreign firms and local IC manufacturers "will have lost a significant business opportunity."
In light of this, Lin hinted that current restrictions on investment in high-tech Chinese ventures could be eased, saying that a "practical revision of cross-strait investment regulations was necessary."
He also said that the government's future role in cross-strait investment should be more "advisory" in nature and should not become "too involved."
Lin's remarks came in the wake of reports that Wang Wen-yang (
News of Wang's high-tech investment has fueled speculation of a growing trend, whereby high-tech firms -- in particular Taiwan's blue-chip semiconductor companies -- are increasingly looking to China as a favored investment destination.
Chang Chih-yuan, a senior executive at a local IC firm, said that concern over Taiwan's ability to provide stable electricity and water supplies -- in addition to conflicting policies between central and local governments on resource allocation -- is forcing high-tech firms to look elsewhere.
"In Taiwan, the quantity and quality of water, electrical and land resources are just not enough," Chang said.
Added to these considerations, Chang said, are the "rewards" local authorities seek from IC firms fostered by an unequal distribution of financial resources between local and central governments.
Considering the efficiency and resources of the Chinese government and similarities in language and culture, Chang said China would be the first choice for Taiwan IC firms looking to expand overseas.
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