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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (61977)	3/13/2002 12:37:12 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Security fears put pressure on chip technology transfer plan -- South China Morning Post, 3/13/2002 e-insite.net THE TAIWAN GOVERNMENT appears to have reached a consensus that will allow a core element of its semiconductor industry to shift low-end production to China. Responding to industry and media pressure, the Democratic Progressive Party (DPP) led cabinet agreed to ease a long-standing ban on investment in eight -inch wafer manufacturing in the mainland in favour of case-by-case evaluation. However, critics claim the policy leaves critical issues of national economic and enterprise risk unanswered. Premier Yu Shyi-kun announced four principles guiding government policy. Quantitative regulation, so not all eight-inch wafer fabricators migrate. Matching investment, to ensure firms offset capital inputs to China by investing in Taiwan. Retention of core technology and research and development in Taiwan, so the island's semiconductor industry stays ahead of the mainland's. Regulation of technology, with specific reference to the 1995 Wassenaar Arrangement, which requires controls on exports of advanced dual-use (civilian and military) technology and equipment to specific countries, including China. Mr Yu said under strategic technology control regulations in Taiwan as well as the United States and Japan - the two countries from which most of the island's wafer-fab technology is purchased or licensed - permission from Washington or Tokyo may be needed for re-export of wafer manufacturing equipment of less than 0.25 microns in etching capability. Up to seven wafer factories at or over the 0.25-micron threshold could be permitted to shift equipment to the mainland if such a liberalisation was made, National Science Council chairman Wei Che-ho said. Most of Taiwan's eight-inch wafer facilities feature more sophisticated processes.