TAIPEI, Taiwan -- Hon Hai Precision Industry Co. Ltd. and two other of Taiwan's IT manufacturers have won approval to secure land near Taipei for their investments worth a total of $1.3 billion.
A committee of the Taipei County Government has given permissions to Hon Hai, Cheng Uei Precision Industry Co. Ltd., and Dbtel Inc. to choose land in the Dingpu High-tech Park of Tucheng, which is close to Taipei, according to the government. The three outbid eight other companies for the right to build in the park.
The approval comes as the Taiwanese and Chinese governments are competing to attract investments from electronics companies to help boost their economies.
The three winners will have priority rights to pick the land they want in the 7.25-hectare park. The government is offering incentives for as long as eight years, including free rent for the first three years and half-price rent for the following five years.
Hon Hai, an EMS manufacturer of PCs, connectors, and other components that serves customers like Dell Computer Corp., is planning to spend $344.8 million through 2005 building an R&D center in the park, the government said in a statement. Hon Hai also produces PS2 game consoles for Sony Corp.
Cheng Vei said it may build a similar center that would cost $143.7 million for the development of Bluetooth components, WLAN devices, and DSPS, among products.
Taipei-based Dbtel, which makes most of its cellular phones in China and sell them on the mainland, would spend $800.3 million through 2008 for a production and development facility and to set up a headquarters, according to the statement.