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

To: StanX Long who wrote (62049)	3/14/2002 12:45:30 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Foundries poised as Taiwan nears OK on China fab investments By Mike Clendenin eetimes.com EE Times March 13, 2002 (6:33 p.m. EST) TAIPEI, Taiwan — After months of delays and acrimonious debate, the Taiwan government is expected to ease restrictions this month on local investment in 200-mm wafer fabs in China. That will officially open the door for Taiwan Semiconductor Manufacturing Co. and United Microelectronics Co., which are expected to swiftly move into the market to establish positions against emerging competitors. Both TSMC and UMC have made preliminary moves into China, sending representatives to scout locations near Shanghai. UMC has been more aggressive, selling used 200-mm production lines that many believe will end up in a still-undisclosed UMC venture in China. The debate over whether to allow such fab investment has nearly paralyzed the Taiwan government, which has struggled to satisfy conflicting interests. By far, this is the government's most watched decision since it decided to open up high-tech-oriented exchanges with China, a longtime political rival. Such trade has been closely scrutinized, which has made it harder — but not impossible — for Taiwanese companies to set up operations in China, home to a cheaper talent pool and greater abundance of resources. "We fear that if high-end companies like TSMC move there, then there will be no expansion opportunities in Taiwan," said Wen Hsu, vice president of the Taiwanese Professional Engineers Association. "We will not have better jobs, or better pay. If we want that, then we will have to go to China. I want to stay here. My family is here."