Draft of the management mechanism for 8-inch wafer fabrication plants invested in Mainland China produced
E020323Y5 Apr. 2002（E32）
The new draft of the “Effective Management Mechanism for 8-inch Wafer Fabrication Plants Invested in Mainland China” has been made by the Ministry of Economic Affairs. (“MOEA”) In the future, 8-inch wafer fabrication plaints will adopt direct investment when they invest in Mainland China. As for strengthening technical controls, the National Science Council will enact regulations controlling hi-tech talents. Meanwhile, the MOEA will set up the mechanism to control the trend of export or import of wafers and other local hi-tech facilities.
The MOEA ad hoc committee consisting of manufacturers, official authorities and scholars suggested that the effective management mechanism shall include the following five principles: total volume control, relative investment, development & research in Taiwan, technical control and international synchronization. The MOEA has revised and proposed new draft of the “Effective Management Mechanism for 8-inch Wafer Fabrication Plants Invested in Mainland China” according to the aforementioned five principles of management. The major directions are: 1. how to prevent the crowding out effect of capital; (i.e. the concept of total volume control and relative investment); 2. how to prevent the loss of technologies; 3. the criteria of examination procedures; 4. management after approval; and 5. management of illegality.
1. To Prevent the crowding out effect: open up wafer fabrication plants to invest in Mainland China by replacing the old ones with the new ones; take total volume control, the total investment of local industry of wafer is estimated at not more than 200 billion; further, when a 8-inch wafer fabrication plant is moved out, a 12-inch wafer fabrication plant must be invested in Taiwan.
2. To exactly control the incoming and outgoing of enterprises’ capital, the MOEA plans to revise the relevant provisions of the “Regulations Approving Investment or Technical Collaboration in Mainland China.” In the future, when an enterprise of semi-conductors invests in Mainland China, the current method of investment, i.e. indirect investment in Mainland China or investment in Mainland China via a third place, will be changed to direct investment to facilitate control of the capital flow.
3. To prevent loss of technologies: it is ruled that the intellectual property rights of the technologies developed and researched by wafer fabrication plants investing in Mainland China must belong to the parent companies in Taiwan. What is strengthened additionally is that the control of export, import and flow of wafer and other hi-tech facilities will be highlighted to prevent hi-tech facilities from outflow. The wafer facilities will be added to the hi-tech control list and there will be a control mechanism to control the flow. The National Science Council will enact regulations controlling hi-tech talents.
4. Illegality committed by manufacturers who invest in Mainland China shall be managed in accordance with the current Statute Governing Relations Between People of the Taiwan Area and Mainland Area.” The government will also take punitive measures such as ceasing local financial loans and special subsidies.
Source: Economic Daily News 03/23/2002
