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Hsieh suggests reviewing tech export controls

Democratic Progressive Party (DPP) presidential candidate Frank Hsieh (謝長廷) said yesterday that regulations governing technology investments in China should be reviewed to bring them in line with US regulations on technology exports.

Following a meeting with Taiwan Semiconductor Manufacturing Co (台積電) chairman Morris Chang (張忠謀), Hsieh said that the nation lagged behind the US in easing restrictions on technology exports to China and this had affected the competitiveness of Taiwanese businesses.

While insisting that control over technology exports to China in the high-tech, defense and agricultural sectors was necessary, Hsieh said he believed that a review of the mechanism governing export control was needed.

"Businesses and experts cognizant of the international trend in these areas should participate [in the review]," Hsieh said.

DPP caucus whip Ker Chien-ming (柯建銘) also took part in the one-hour closed-door meeting.

Ker quoted Chang as saying that "the mechanism is problematic if its decisions are made only by national security officials and businesses are excluded."

Ker said Chang cited Intel as an example: The US company is investing US$2.5 billion to build a 12-inch (300mm) wafer plant deploying 90-nanometer process technology to produce central processing unit chips in Dalian, China.

In comparison, Taiwanese semiconductor chipmakers are only allowed to set up 8-inch (200mm) wafer fabs using 0.18-micron process technology in China, Ker said.

"Other than the national security element, economic development should also be taken into consideration [in determining cross-strait economic policy]," Hsieh said.

But Hsieh added that he and Chang agreed that continuous technology innovation and the ability to provide value-added products were critical to the nation's long-term economic development.

Further liberalization of investment in China will only have a short-term impact, Hsieh said.
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