Despite vehement opposition from the TSU, the Executive Yuan may approve Taiwan Semicon-ductor Manufacturing Co's (TSMC) request to establish an 8-inch-wafer manufacturing plant in China as soon as next Wednesday, Cabinet officials suggested yesterday.
The Ministry of Economic Affairs' Investment Commission is scheduled to hold the first-stage review of the company's US$898 million project next Wednesday.
If approved, the company will be allowed to transfer US$50 million to acquire land and start building the structure that will house the fab in China.
The commission will then conduct a second-stage review to allow the company to transfer machinery and start production.
Cabinet Secretary-General Liu Shih-fang (劉世芳) yesterday said that since it is the government's established policy to actively liberate its policies and effectively manage China-bound investment, it will let local chipmakers invest in 8-inch wafer manufacturing in China under the principle of sound management.
"To that end, it's important to push the passage of the proposed national technology protection law during the current legislative session," Liu said.
President Chen Shui-bian (陳水扁) asked the Cabinet and the DPP legislative caucus on Jan. 28 to press for passage of the proposed law this session.
Commenting on the TSU's threat to bar Premier Yu Shyi-kun from giving his report to the Legislative Yuan next Thursday if the Cabinet fails to positively respond to their requests by Friday, Liu said that the Cabinet will continue to hold talks with its ally to explain the government's policy.
Mainland Affairs Council Chairwoman Tsai Ing-wen (蔡英文) also dismissed media speculation that the government would frown on TSMC's application in a bid to pacify the TSU.
"The government's stance on the investment of wafer plants in China remains unchanged," Tsai said in a press release made available yesterday.
"The government will conduct careful and comprehensive reviews of the company's application in accordance with the criteria made available last March," she said in the statement.
On March 29 last year, Yu announced that the government would allow local chipmakers to transfer depreciated 8-inch wafer fabrication machinery to China on the condition that they meet certain requirements, including local investment levels.
They were not be eligible to apply until their 12-inch wafer fabrication plants in Taiwan have ramped up mass production -- which is defined as the plant's normal output of ordered wafers -- for at least six months.
TSU lawmakers have asked the government to set a higher standard for production of 12-inch wafer fabs before allowing local chipmakers to transfer their 8-inch wafer plants to China.
While the monthly production volume of TSMC's 12-inch wafer plant is between 3,000 and 4,000, the company has argued that 20,000 a month would keep the plant more competitive.
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