The government should use all means at its disposal to stem the flow of high-tech investment to China, according to a report out of the National Security Bureau (
The Bureau issued an analysis of their conclusion in a top secret report titled, An Analysis on how the Chinese Communist Party Attracts Taiwanese High Tech Investment for the Suzhou Industrial Park.
According to Chinese-language media, the report implores government officials to curb high-tech investment, saying 74 Taiwan tech firms have already invested NT$20 billion (US$841 million) in the Suzhou (蘇州) Park, which sits just outside of Shanghai.
One official said the report emphasizes high-tech firms due to fears that once they are heavily invested, these firms will become political puppets of Beijing.
"The `no haste, be patient' investment policy has nothing to do with the small and medium-sized companies in Taiwan, only with big investors," said a government official on condition of anonymity.
Formosa Plastics Group Chair-man Wang Yung-ching (王永慶) is a prime example. On public television last week, he implored people in Taiwan to "calmly accept the `one China' principle," while repeating his call to lift all curbs on investment across the Strait.
The "no haste" policy stopped Wang from investing US$6 billion in 1992 to build a chemical complex in China's Fujian Province.
Laws in Taiwan currently limit single investments to only US$50 million for China-bound projects, and ban certain high-tech investments and infrastructure projects. These measures have had little effect on companies who skirt the law by setting up holding companies and transferring investment money directly from overseas accounts into China.
Last year, China's information technology production value topped US$25.5 billion, beating Taiwan for the first time, with Taiwanese firms based in China accounting for an estimated 72 percent of that figure.
"I think people are really getting too emotional about [this issue] because nobody, including the government, is sitting down to discuss this matter rationally. How much money has gone over to China? How much impact will it have on industry here? You have to go over it sector by sector, item by item and ask the businessmen who intend to go or have already gone to talk about this issue in front of the public," said Andrew Yang (
According to the National Security Bureau report, officials in Suzhou are actively developing industry "clusters" which include the entire spectrum of each industry. From downstream component makers like computer motherboard and monitor producers to PC cases and mouse makers, China has slowly won over the computer industry.
Now, Chinese officials are targeting the semiconductor industry, and have won a few victories with investments pledged by Winston Wang (
Alphabet Inc’s Google on Tuesday announced plans to buy a New York office building for US$2.1 billion, confirming its push into the US’ largest city despite the COVID-19 teleworking trend. This is the largest real-estate purchase in the US for an office building since the beginning of the global spread of COVID-19, the Wall Street Journal quoted Real Capital Analytics as saying. Google already rents the premises in Manhattan, which are located on the site of a former railroad terminal in the Hudson Square neighborhood. The Silicon Valley giant envisions a campus with a total surface area of 160,000m2 by mid-2023
‘CORE VALUES’: The contract chipmaker did not specify why the employees were dismissed, but media reports said they had leaked information about customer orders Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has fired seven of its employees for violating the company’s “core values,” the world’s largest contract chipmaker said yesterday. While the company did not disclose exactly why it fired the seven employees, local media reports earlier in the day said that the employees had leaked confidential information about customer orders. In a statement, the company said that it fired the seven at once, adding that it released an internal notice last week to inform the entire company of the move ahead of the four-day Mid-Autumn Festival holilday, which ended on Tuesday. TSMC said it fired the seven
MILD ADJUSTMENT: Two previous efforts failed to curtail mortgage financing, although the new measures should not affect property prices, the central bank governor said The central bank yesterday tightened credit controls for second-home mortgages in specific areas and purchases of plots of land, especially in industrial parks. However, the nation’s top monetary policymaker kept its policy rate at a record-low 1.125 percent for the sixth consecutive quarter, despite revising up its GDP growth forecast for this year from 5.08 percent to 5.75 percent. “Board members factored in economic uncertainty at home and around the world,” central bank Governor Yang Chin-long (楊金龍) said, adding that growing inflationary pressure was a temporary phenomenon induced by bad weather and a low base effect for oil prices. International fuel price increases
DOWNCYCLE: Most buyers are wary about placing new orders, and although the decline could also be as little as 3%, it would be the first drop since the start of the year The average selling price of DRAM chips next quarter is expected to decline by up to 8 percent quarter-on-quarter, with memory chips used in notebook computers and consumer electronics seeing the steepest decline due to excess inventory and a shortage of components, market researcher TrendForce Corp (集邦科技) said yesterday. That means the DRAM industry is entering a new downcycle after experiencing a boom for three quarters, the longest uptrend in the history of the industry. The Taipei-based researcher said it expects the balance between supply and demand to begin tilting toward a surplus in the final quarter of this year. Most DRAM