LONDON The Taiwan government is set to lift a long-running ban on investment by Taiwanese companies in Chinese counterparts, according to reports. The result is likely to benefit foundry chipmakers Taiwan Semiconductor Manufacturing Co. Ltd. and United Microelectronics Corp.
TSMC has some investment in China but it has been heavily restricted by the Taiwanese government. TSMC, UMC and others such as LCD maker AU Optronics, have urged that the government lift the ban to help them cut costs and compete with rivals.
Reports have referenced Taiwan's economic minister Shih Yen-shiang as saying panel makers and chip companies using advanced 0.13-micron manufacturing processes would be able to invest in China and buy stakes in mainland rivals.
The thawing of relations is bilateral so Chinese companies would also be allowed to buy Taiwanese flat panel and chip makers after the current liberalization measures are reviewed later this year.
"The discussions will not take a long time. We expect there will be a conclusion before the year's end," an AFP report quoted Shih as saying.
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