Sun, Feb 17, 2002 - Page 1 News List

Yu to discuss cross-strait chipmaking

BLOOMBERG , TAIPEI

Premier Yu Shyi-kun will meet with Taiwanese chipmakers on Thursday to discuss a plan to lift a ban on technology investments in China, a local newspaper reported yesterday, citing government officials.

Yu may discuss a proposal to let Taiwanese companies invest in plants that make eight-inch silicon wafers in China, the paper reported.

Local companies are already opening plants in Taiwan that make 12-inch wafers, which are expected to cut production costs by as much as one-third and maintain the nation's competitive edge.

Vice Premier Lin Hsin-yi (林信義) earlier this month said the nation would scrap the ban on its US$20 billion chip industry investing in China by the end of the year.

The ban would free companies such as Taiwan Semiconductor Manufacturing Co (台灣積體電路公司) and United Microelectronics Corp (聯電), the two biggest made-to-order chipmakers, to build plants in China and tap its US$10 billion market for chips, one of the world's biggest.

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