Taiwan government eases ban on companies wishing to do business in China

March 29, 2002 –Taiwan — In a late night speech, Taiwan’s Premier Yu Shyi-kun said Taiwan companies that want to do business in China will be "allowed to produce less-advanced computer chips in China if they move on to make more sophisticated products in Taiwan," according to Taiwan AP.

Earlier in the week, a government panel led by Taiwan’s Vice Economics Minister, Chen Ruey-long, said that domestic foundries should be permitted to relocate their eight-inch wafer fabs in China, with some restrictions.

Chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) says it sees great potential in China region and "beleives that entry into the China market … from both a sales perspective, as well as a manufacturing perspective is important to the long-term growth of the company," says Chuck Byers, director, communications corporate marketing.

Those opposing the lifting of the ban include the Taiwan Solidarity Union, who "have strongly recommended putting off the lifting of the ban until local twelve-inch wafer foundries [obtain] mass production capability, which is [expected to happen until] the end of the year," according to the article.

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