The government will review Tai-wan Semiconductor Manufactur-ing Co's (台積電) China-investment plans next week, Minister of Economic Affairs Lin Yi-fu (林義夫) said yesterday.
The ministry's Investment Commission is scheduled to review the application on Wednesday, Lin said.
Premier Yu Shyi-kun and TSU Chairman Huang Chu-wen (黃 主文) held a joint press conference on Thursday to announced that local chipmakers investing in China without permission will be penalized.
TSMC received preliminary government approval on Jan. 22 to set up a 8-inch wafer plant in the Songjiang Industrial Park on the outskirts of Shanghai.
The company plans to transfer US$371 million from its headquarters and borrow US$418 million from banks in China to help finance the US$898 million factory. According to the ministry, another US$109 million is expected to come from factory revenue once the plant begins operations.
Lin said that the ministry still wants to know how the company will raise and use funds in China, suggesting the finance plan has yet to be approved.
Industrial Development Bu-reau Director-General Chen Chao-yi (陳昭義) has said the ministry will form an ad hoc group of industry experts to define the "reasonable productivity" of a 12-inch-wafer fabrication plant, according to Lin.
Semiconductor manufacturers who want to invest in 8-inch chip production in China must first demonstrate that they have "reasonable productivity" of 12-inch chips domestically.
According to the ministry, that definition will refer to the international market climate and domestic economic environment when drawing up their definition.
The TSU has suggested high-production ceilings for local chip-makers, saying their monthly 12-inch chip production capa-city at home should reach 20,000 units with a yield rate higher than 70 percent.
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