Wafer Fab Investing in Mainland China Must Reserve Controlling Power

In order to cope with the opening for wafer fabs’ investment in Mainland China, the Ministry of Economic Affairs drew up a draft of the requirements on examination and supervision of the investment in establishing wafer fabs in Mainland China, and will form multi-agency examining and supervising groups.  The Minister of the Ministry of Economic Affairs is nominated to assume the convener of the groups.

 

According to the draft, the Government allows 8-inch wafer fabs to invest in Mainland China, provided that the process they conduct must be 0.25um (above) process.  The applicant must satisfy such qualifications as setting up a wafer fab in Taiwan and achieving the basic mass production for six months, and then is eligible to file the application with the Investment Commission.  The “basic mass production” is defined as that the fabs’ “process technology” has been inspected and approved by clients, and the fabs shipped goods upon receipt of clients’ order.

 

The applicant must report its financial status, including its method to raise capital, and submit the statement for technology transfer as well as its portfolio report for the past and next three years.

 

The draft also specifies that the applicant must reserve controlling power to the enterprise invested by the applicant in Mainland China and should carry out the direct investment in principle.

 

Source: Liberty Times 07/24/2002

Related report: Economic Daily News 07/24/2002

Translated by Corrina Wu