The high-profile Shanghai Hong Li Semiconductor Manufacturing Corp (
The company, which has a total of US$1.63 billion (NT$52 billion) invested in it, has become a high-profile case on both sides of the Taiwan Strait because of Jiang's and Wang's special status. Although officials from both sides tried to keep a low-profile about the investment, more than two hundred Taiwanese companies' representatives attended the ceremony yesterday, including the chairman of First International Computer Inc (FIC, 大眾電腦), one of Taiwan's largest computer makers, Chien Ming-jen (簡明仁), who is also Wang's brother in-law, and other business heads from Taiwan.
During Wang's speech yesterday, he said that to establish an 8-inch wafer fab in China has been his and Jiang's shared dream. "I hope that Shanghai Hong Li will become the engine of high-tech industry in China in the 21st Century," Wang said.
According to Wang, they have been preparing to set up the company for more than a year. "Just as President Jiang Zemin said -- difficulties and opportunities exist side by side," Wang said. "We are confident we can solve any difficulties."
Wang also said that he will make Shanghai Hong Li a leader in foundry technology and expects to produce wafers in advanced 0.25-, or even 0.18-micron technology. "We will soon upgrade the semi-conductor industry in China," Wang said.
Reports said that Wang and Jiang are going to build three 8-inch wafer plants and three 12-inch wafer plants in China. The total investment is said to be the largest in China's semiconductor industry in recent years.
Officials from the Shanghai City Government believe that Shanghai Hong Li's investment plan will start a high-tech investment trend in Shanghai, attracting more foreign companies to make investments in the Hi-Tech Park. Authorized by the central government, Shanghai Zhangjiang Hi-Tech Park, established in July 1992, has already become a world-class hi-tech industry development zone.
While Taiwan's ban on major investment plans in China still remains, however, many have questioned Wang's actions in establishing a wafer fab in China by his Hung Jen Group (
In response to the criticism, a Hung Ren Group spokesperson yesterday stressed that Wang only serves as the company's general manager, while the capital comes from other overseas investors. "Investment in Shanghai Hong Li is 100 percent from foreign companies," the spokesperson said. "Wang will begin to put in his money after the government's regulations are loosened," the spokesperson added.
Meanwhile, according to official data published yesterday, indirect investment from Taiwan to China nearly doubled in the 10 months to October.
Approved China-bound investment reached US$2.01 billion in the January to October period, up 98 percent from a year earlier, according to figures from the Investment Commission.
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