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Taiwan Permits Panel and Chip Investment in Mainland

Beijing Morning Post, 2/12/10

Taiwanese authorities announced that certain Taiwanese chip makers and makers of 6G or later LCD panels will be permitted to invest in mainland China.

Authorities said, however, that Taiwanese companies would be limited to three mainland production lines, and that there must be a difference of at least one generation between their existing Taiwanese production lines and their mainland production lines. Taiwanese LCD panel maker AU Optronics (AUO) already has an 8.5G LCD panel line in Taiwan, so the company will be limited to constructing 7.5G production lines on the mainland. Authorities have also set a maximum of NTD 50 bln (USD 1.56 bln) annual investment in the mainland. When companies invest in the mainland, they will also be required to make similar investments in Taiwan.

Keywords: regulation policy display hardware investment LCD Taiwan AUO

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