2010-03-01
Relaxation of Investment Restrictions in China for the TFT-LCD and Semiconductor Industry
The Ministry of Economic Affairs (MOEA) has recently passed new regulations to relax the restrictions on investments in China imposed on the TFT-LCD and semiconductor industry. Currently, a company in the TFT-LCD and semiconductor industry is only allowed to run factories in China that are at least one generation behind its most advanced plants in Taiwan in order to ensure Taiwan’s leading position with respect to the core technology.
MOEA indicated that it will be inclined to approve the Taiwanese TFT-LCD sector to build TFT-LCD production lines below 6th generation. The application for investment in the 6th generation or above TFT-LCD production lines in China will be subject to more stringent review by the MOEA. Under the new legislation, Taiwan Semiconductor Manufacturing Company Limited will be permitted to invest in 90-nanometer plants in China since it has begun making chips in Taiwan using 45nm process technology.
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