Thu, Sep 30, 2004 - Page 11 News List

Firms say they lose out in China

COLD-WAR RULES US suppliers of chip-production equipment to China complain that their government is penalizing them by its interpretation of a 1996 arrangement

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Terry Higashi, chairman of Tokyo Electron Ltd, the world's second-largest maker of chip tools, also said his company is being held back in selling to China. The Tokyo-based company has a sales office next door to Grace Semiconductor Manufacturing Corp (宏力半導體), which has started production in Shanghai's Zhangjiang Hi-Tech Park. Applied Materials also has an office in the park.

"It is very difficult for us to transfer technology to China," said Higashi, in an interview. "There is a political issue." He didn't offer details on how restrictions affect his company.

Sales of equipment to China will grow at an average annual rate of 25 percent in the next three years, SEMI said.

Grace Chairman Winston Wang(王文洋) said that the US mainly limits the types of chips made in China. US officials earlier this year visited his company to ensure Grace doesn't make chips for military use, he said.

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