The Ministry of Economic Affairs said yesterday that Taiwan SemiConductor Manufacturing Co's (TSMC) move to sell its facilities at a six-inch wafer factory in China in March did not violate any regulations.
The Ministry said that since the measures relating to the export-control of such facilities took effect at the end of last April, TSMC did not break any rules.
"Measures regarding the export-control of wafer-producing facilities and equipment took effect at the end of April.
"The TSMC reported to customs [officials] about its exportation of such facilities to Shanghai in March and those facilities still fit into the category of allowed-export products," said a Board of Foreign Trade press release yesterday.
A Chinese-language newspaper reported yesterday that after the TSMC got rid of its old six-inch wafer plant last April, the leading domestic semiconductor industry company sold its facilities to Taiwan-owned AsiaTech, which later sold the facilities to China-based Asia Sinomos Semiconductor Inc.
Asia Sinomos Semiconductor currently invests in the six-inch wafer plant in China, with most of the leading team members coming from Taiwan and having previously been employed with AsiaTech.
Such a deal raised suspicions that TSMC not only sold its facilities but also provided technical advice and training programs to China, which worries some people because of the outflow of Taiwan's high-tech knowledge to rival China.
The Chinese-language report said the situation had drawn the attention of the Mainland Affairs Council (MAC) and as a result the council was probing the case.
The MAC, however, denied the report yesterday, saying that the Ministry of Economic Affairs is the government agency in charge of such matters.
The foreign trade board under the economic affairs ministry responded yesterday by saying that, among the facilities in question, there were two high-tech machines that fell in the restricted category, but since TSMC sold those products before the regulations took effect, there was no need for the TSMC to apply for the government's permission.
Those facilities, however, still remain in Taiwan because AsiaTech is still waiting for an approval document to re-export from the original exporting country.
According to current regulations, any export of wafer-related equipment to China has to get permission from the government.
The investment in and export of wafer plant facilities to China drew the public's attention earlier this year, as people worried that such an outflow of high-tech equipment might help rival China to outstrip Taiwan developmentally.
The government thus announced it would control the export of related wafer facilities in April and regulations controlling investment of eight-inch-and-below wafer plants in China were made.
The TSMC has filed its application with the economic affairs ministry to build an eight-inch wafer plant in China this September. But the case is still pending.
TSMC public relations personnel said yesterday that the company sold such facilities for the purpose of turning the outdated equipment into cash, which has nothing to do with any intention to invest in or cooperate with China-based Asia Sinomos Semiconductor.
RSS