The long wait to invest in China may soon be over for Taiwanese chipmakers, as Premier Yu Shyi-kun appears set to finalize the policy by Friday and send it off to the Legislature for final approval, sources said yesterday.
"The policy has already been sent to the Premier's office and he will hold a meeting on Friday to determine whether or not it will meet approval from all sides," a source close to the situation said.
The question of allowing Taiwanese chipmakers to invest in China raised so much emotion earlier this year that thousands took to the streets in protest and calls were made for the Vice Premier Lin Hsin-yi (
Taiwan Semiconductor Manu-facturing Co (TSMC,
Until the government rules are set, chipmkers cannot make the leap, costing them valuable time.
"We can't even accept their applications to invest in China until the management policy is in place ... the Taiwan Solidarity Union has been very insistent on this point," said Su Jeong-feng (
The premier promised to send the policy proposal to the legislature by May 10, but politicians grappled on a host of issues, chiefly, "ensuring that sensitive technologies will be protected and managing the movement of high-tech workers across the Strait," said James Chou (
Companies have already filed complaints against former workers believed to have passed sensitive technology on to new competitors in China.
TSMC's chairman said over 400 Taiwanese engineers have signed on with Shanghai-based Semiconductor Manufacturing International Co (SMIC,
A former TSMC employee was charged with industrial espionage.
The Taiwan Solidarity Union wants the government to take action against SMIC and Grace Semiconductor Manufacturing Corp (宏力半導體) for jumping the gun on investment in China. Both companies are partially backed by Taiwanese capital and know-how.
SMIC CEO Richard Chang (
So far, no action has been taken against either company.
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