Taiwan eases curbs on its firms making semiconductors in mainland China
Competition sparks change, which previously saw Taiwan restrict manufacturing activities of its prized semiconductor sector on mainland to protect intellectual property and trade secrets
Taiwan has relaxed curbs on its companies setting up semiconductor manufacturing plants in mainland China, in a bid to enable them to better compete for mainland clients.
The island’s economics ministry said it would allow a maximum of three wholly-owned 12-inch wafer foundries to be set up on the mainland by Taiwanese companies, easing previous rules that limited such investments to mostly older technology and to joint ventures.
Amid political tensions between the neighbours, Taiwan has restricted manufacturing activities of its prized semiconductor sector in China, with an eye to protecting intellectual property and trade secrets.
However, competition from the mainland’s fast-growing, though fledgling chip industry, has put pressure on Taiwanese companies to widen their mainland footprint.
Foreign companies are also building their presence in the mainland.
While Samsung Electronics already has a huge chip plant in mainland China, Intel and Qualcomm have announced investments in China.
As a result, Taiwan Semiconductor Manufacturing and its smaller domestic rivals had urged the island nation to relax the curbs.
