SAN JOSE, Calif. The Taiwan government has reportedly relaxed the rules for Taiwanese IC-packaging and assembly houses to invest and set up shop in China, according to sources.
“The Taiwan government announced the approval of assembly and test investments in low-end package devices within limited boundaries as defined by the government,” according to sources.
Basically, Taiwan wants to limit only "low-tech" IC-assembly technology going to China. Taiwan companies applying for the investments must meet the following criteria: lower-end packaging and related test services; a Taiwanese firm must have full control of the investments; and proportional investment must be also made in Taiwan for advanced packaging and test.
Some time ago, the Taiwan government relaxed the rules for semiconductor fabs in China. Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) recently set up an 8-inch, 0.25-micron fab in Shanghai.
But until now, the Taiwan government has not allowed Taiwanese backend providers to officially set up shop in China. Advanced Semiconductor Engineering Inc. (ASE), Siliconware Precision Industries Co. Ltd. and other Taiwanese IC-packaging companies have been looking to invest in China.
Taiwan’s big backend rivals, namely Amkor, STATS ChipPAC and others, have been in China for years.