The news that the world's largest chip-testing and packaging company could merge with a US private equity firm has prompted lawmakers from across party lines to advocate lifting the 40 percent cap on China-bound investments.
Although the proposal, which would further cement cross-strait trade and economic ties, was backed by a handful of Democratic Progressive Party (DPP) lawmakers, the head of the DPP caucus said that the party had not decided its stance on the issue.
Chinese Nationalist Party (KMT) Legislator Christina Liu (劉憶如) said that she began garnering support for the relaxation of the investment cap when Advanced Semiconductor Engineering (ASE) confirmed on Friday that a consortium of investors led by the US-based Carlyle Group had offered to buy the company.
"[The proposal] has been signed by more than 50 lawmakers, including some from the DPP. However, I would rather not name the DPP lawmakers for the moment, considering the pressure they might face for supporting it," Liu said.
At present, Taiwanese firms with a net worth of less than NT$5 billion (US$152.4 million) are allowed to invest up to 40 percent of their net worth in China.
Cumulative China-bound investments for Taiwanese firms with a net worth of NT$5 billion to NT$10 billion are capped at 30 percent of net worth and the ceiling is set at 20 percent for firms with a net worth of more than NT$10 billion.
Liu's initial proposal calls for a cap of 60 percent for firms with a net worth of less than NT$5 billion and a ceiling of 40 percent for companies with a net worth of more than NT$5 billion.
DPP Legislator Hong Chi-chang (
"When the news that Hong advocates easing the investment caps was reported, he came under criticism from pan-green supporters," Liu said.
Liu said that she and Hong had introduced another proposal calling for the cap to be raised to 40 percent -- regardless of net worth.
Hong said that the second proposal was more appropriate for Taiwan as it could help large companies to enhance competitiveness.
The two proposals would amend Article 35 of The Statute Governing the Relations Between the Peoples of the Taiwan Area and the Mainland Area (兩岸人民關係條例), effectively overriding the current regulation, which is an executive order.
DPP Legislative caucus whip Ker Chien-ming (
"Party members should reach a consensus on the issue within the party before signing off on the proposals," he said.
Taiwan Solidarity Union caucus whip Huang Chung-yung (
Meanwhile, the Executive Yuan said that cross-strait policy would not have any obvious and immediate effect on a Carlyle-ASE buyout.
"However, we will assess the impact of cross-strait policy on industrial competitiveness so the policy will strike a balance between national interest and the needs of the industrial sector," Cabinet Spokesman Cheng Wen-tsang (
Cheng made the remark late last night at the Executive Yuan.
When asked whether the Cabinet is considering amending related regulations to raise the current China-bound investment cap of 40 percent of a company's net value, Cheng said only that cross-strait polices would not affect the merger.
Additional reporting by Ko Shu-ling
also see story:
ASE deal is proof of nation's economic strength: president
‘NO SECURITY RISK’: The Railway Bureau reassured the public that the technicians’ activities were limited to technical guidance and did not involve sensitive systems The Railway Bureau yesterday said it had invited eight Chinese technicians to assist with an airport MRT construction project. The bureau issued the confirmation after an Internet user said Chinese nationals had entered the construction zone of Taiwan Taoyuan International Airport’s Terminal 3 project. They asked why “individuals from an enemy state” were allowed access to such a major national infrastructure project, which raised serious concerns over Taiwan’s industrial safety, sensitive systems and information security. The bureau’s Northern Region Engineering Branch Office said subcontractor Taiwan Handle Industrial Co (台灣手把工業) of the Taoyuan airport MRT’s “Contract No. CU05 Project A14 Station Civil, MEP &
A US uncrewed surface vessel (USV) encountered multiple Chinese warships during an autonomous transit of the Taiwan Strait, US defense company Seasats said in a statement on Wednesday. Seasats announced that a Lightfish USV had completed the first autonomous transit of the Taiwan Strait. Over five days, the USV traversed the entire length of the Strait while constantly monitoring surface vessel traffic, the company said. The Lightfish encountered multiple Chinese warships, one of which was a Chinese People’s Liberation Army Navy (PLAN) Type 056 corvette, it said. The Chinese vessels were operating “well within Taiwan’s exclusive economic zone without transmitting their identity via the
‘BOOMING’: ’ The number of partners we have here is incredible. You can see from their stock prices. They’re doing so well, they’re so happy,’ Jensen Huang said Nvidia Corp’s spending in Taiwan has ballooned to about US$150 billion a year, 10 times the US$10 billion to US$15 billion the company spent five years ago, Nvidia chief executive officer Jensen Huang (黃仁勳) said yesterday, suggesting Taiwan’s strategic importance in the global artificial intelligence (AI) supply chain. “Taiwan is the epicenter of the AI revolution. This is where the chips come, packaging comes. This is where the systems are made. This is where AI supercomputers were created,” Huang said at a meeting for the company’s employees in Beitou-Shilin Technology Park (北投士林科技園區) in Taipei, the planned site of Nvidia’s Taipei headquarters. “Taiwan
GREATER REACH? Auto parts and wood products would face tariffs of up to 15%, matching those targeting the EU, Japan and South Korea, Vice Premier said The US has announced that preferential tariff treatment for Taiwan’s non-semiconductor Section 232 goods would take effect retroactively from May 1, the Executive Yuan said yesterday. The US government yesterday posted a notice on the Federal Register’s public inspection Web site previewing tariff concessions for Taiwan under a memorandum of understanding (MOU) on Taiwan-US investment after two months of negotiations. The MOU signed on Jan. 15 stipulated three major preferential tariff arrangements: a 15 percent “reciprocal” tariff rate for Taiwan without stacking most-favored nation (MFN) rates; preferential Section 232 treatment for semiconductors and related products; and preferential Section 232 treatment for non-semiconductor
RSS