SAN JOSE, Calif. -- The Taiwan government is mulling over a plan to relax its semiconductor export control laws in China, according to a report from Forbes.
Starting in September, Taiwan President Ma Ying-jeou said the government may allow local chip makers to set up 300-mm fabs in China, according to the report.
Until now, the Taiwan government has opposed local
chip makers from shifting the most advanced technology to China. Taiwan did not want its most prized IC or process technology from moving offshore.
Over the years, the island's key manufacturing industries have moved offshore, mainly to China. This includes its textile, passive component, PC and motherboard industries.
In the IC sector, Taiwan's chip makers are currently limited to 8-inch wafer fabs and 0.18-micron process technologies in China. TSMC owns and operates a trailing-edge, 8-inch fab in Shanghai.
In 2006, Taiwan finalized a plan to relax restrictions on Taiwanese company investment in China, enabling firms to use 0.18-micron chip manufacturing technology in China. Prior to that time, Taiwanese firms were restricted from investing in sub-0.25 micron capacity in China.
Last year, Taiwan announced that it would allow packaging and testing companies to invest in China. ASE and others have invested in assembly plants in China.