TAIWAN will allow mainland firms to invest in chip makers or set up joint ventures as part of a second round of sectors to be opened up as economic ties between the two sides deepen.
Taiwan officials said yesterday that mainland firms would be allowed to take stakes of up to 10 percent in Taiwanese chip firms, or to hold up to 50 percent in joint ventures. They would not be allowed to set up their own operations in Taiwan, however.
The proposal is currently making its way through parliament, but officials could not say when it would be finally approved.
Taiwan chip firms are allowed to buy into mainland ones, but can only use older technologies in any operations here.
Last month, the Taiwan authority said it would include the LCD panel industry in the second round of opening to mainland investment, with maximum 10 percent stakes allowed. It dropped a proposal to allow 20 percent stakes.
Other sectors to be opened will include metals and machinery, as well as some public infrastructure services. Concerns over loss of intellectual property had kept LCD panels off the first list of 100 sectors opened to investment in 2009.
That list included areas considered less sensitive, including automobiles, plastics and PC manufacturing. That initial opening has brought some US$140 million worth of mainland investment to Taiwan so far.
Taiwan and the mainland signed a landmark trade deal last year that cuts tariffs on thousands of products. Officials from the two sides started discussing the implementation of the trade deal at a meeting in Taipei yesterday.
(SD-Agencies)
