Application for Setting Up Wafer Fab in Mainland China Open as of August 12
E020810Y5 Sep. 2002（E37）
The Ministry of Economic Affairs promulgated the guidelines on examination and supervision of the investment in establishing wafer fabs in Mainland China on August 9, 2002, defining that the applicant will acquire the permit for investment only upon the approval of the examining group and then can proceed to invest in Mainland China after acquiring the export permit from the expert group.
The guidelines provide the six requirements on the applicant’s qualification, which are: (1) the applicant must be a Taiwan-based wafer manufacturer; (2) the applicant must have invested in a 12-inch wafer fab in Taiwan and carried out the basic mass production (which means that the process technology has been inspected and approved by clients, and the fab shipped goods upon receipt of clients’ order); (3) the applicant must reserve controlling power to the enterprises invested by it in Mainland China and carry out the direct investment in principle; (4) the applicant who makes the investment based on the price of the existing equipment installed in the applicant’s old wafer fab shall have priority; (5) the process to be conducted by the enterprises in Mainland China must be 0.25um (above) process; (6) the intellectual property rights which are obtained by the enterprises invested in Mainland China but supposed to be vested in the applicant shall be vested in the applicant.
The Ministry of Economic Affairs indicated that upon receipt of the permit, the manufacturers should state the development of their investment plans in writing periodically, along with financial report, technology report, capacity utilization and marketing report, report for research and development status and achievements, and payroll employment report, to enable the competent authority to have knowledge of the circumstances about the sale of wafer for the cross-strait and the variation in the technology level for the cross-strait.
The Ministry of Economic Affairs also highlighted that if the manufacturers fail to provide required information within the time limit or provide untrue information, the Ministry will cancel the permit if it considers such failure gravity, and also will request the relevant authorities in writing to cease subsidizing the applicant in research and development, training talents and long-term and mid-term loans, or will reject the applicant’s following applications.
Source: Economic Daily News 08/10/2002
Commercial Times 08/10/2002
