The Taiwan Solidarity Union (TSU) yesterday voiced its opposition to United Microelectronics Corp’s (UMC) plans to invest in a 12-inch wafer manufacturing plant in Xiamen, China, saying that it may lead to the leak of classified advanced technologies.
Party lawmakers urged the Ministry of Economic Affairs’ Investment Commission not to approve UMC’s investment application for national security reasons.
The Hsinchu-based company announced on Oct. 9 that it planned to invest US$1.35 billion in a three-way joint venture with Xiamen’s city government and Fujian Electronics & Information Group to make advanced chips. Company officials said the firm would initially hold a 50-percent stake in the new venture, and the new plant would begin operations at the end of 2016 at the earliest.
UMC currently produces 8-inch chips in China at a factory operated by HeJian Technology (Suzhou) Co.
“When touring semiconductor plants, visitors are often required to leave any voice, image or video recording equipment outside, because the production line is often considered as classified information, and the manufacturers are worried that the technologies could be copied,” TSU Policy Committee chairman Hsu Chung-hsin (許忠信) told a news conference at the party’s caucus office in Taipei. “If we allow a joint venture with Xiamen, some core techniques would definitely be leaked.”
UMC’s new investment is unlikely to be profitable, since there is not an integrated chip or semiconductor industry in Xiamen, Hsu said.
“Without external economies of scale that supply the relevant raw materials, know-how, or human resources, the project would be a losing proposition,” Hsu said.
It does not make sense to have an investment project that would not turn a profit, yet would risk losing key manufacturing techniques to Taiwan’s major business competitor, Hsu said.
TSU Legislator Yeh Chin-ling (葉津鈴) agreed, adding: “Semiconductor production is an important economic asset for Taiwan, with wafers accounting for 30 percent of Taiwan’s exports. Allowing UMC to relocate its production line to China would definitely have a serious impact on Taiwan’s economy.”
A spokesperson for the commission told the Taipei Times on Oct. 9 that it would take some time to review UMC’s proposal because the investment involves advanced technologies.
Additional reporting by staff writer
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