Sumitomo Electric to Put In Investments in Taiwan.

Recognizing the clustering effect of solar industry in Taiwan, Sumitomo Electric Industries, Ltd. (Sumitomo Electric) announced in November 2010 to invest 2 billion yen in establishing in Taoyuan of Taiwan a saw wire factory essentially needed for solar cell production.  This new company will become the first and the only saw wire producer with a manufacturing plant in Taiwan to supply saw wires to the local leading solar cell manufacturers, Danen Tech Corp., Green Energy Technology, and Motech Industries, Inc..  This establishment can also magnify sales and raise market share in Taiwan.

Taiwan Ministry of Economic Affairs has been cooperating with Nomura Research Institute (NRI) to launch the “Japan Desk” program in recent years to attract Japanese investments.  After the ECFA has been inked between Taiwan and China in 2010, the business income tax in Taiwan drops to 17%.  In addition, the execution of other IPR protection agreements between Taiwan and China has also encouraged more and more Japanese companies to invest in Taiwan.

During the first nine months of 2010, the Japan Desk program has induced Japanese investments and capital increase from a lot of Japan-based businesses, including Marubeni Corporation, Fanuc Ltd. Uniqlo, and House Foods Corp., etc..  According to the statistics of investment promotion office of the Ministry of Economic Affairs given at the end of October 2010, Japanese investments comprise 13 investment cases among a total of 46 foreign investment success cases of an investment value of more than NTD60 billion; Japanese businesses take up the highest percentage of foreign investments in Taiwan.

The officials of the Ministry of Economic Affairs stated that more Japanese investments have been put in Taiwan than ever in a wide array of business fields, including semi-conductor, photoelectric, green energy, culture and creation, and retailing.  The diverse investments will bring in energy in Taiwan’s industry chains.  Also, Hitachi and Japan-based semi-conductor equipment manufacturers, Tokyo Electron Limited and Elpida Memory, Inc. also applied for setting up R&D centers in Taiwan.

The Ministry of Economic Affairs has approved of Hitachi’s and Tokyo Electron’s applications.  Elpida’s proposed investment of USD1 hundred million in establishing a R&D center has also passed the competent authority’s preliminary examination.  Elpida will also increase capital investment in the fabrication facility of Rexchip Electronics Corporation with promising amount.  (2010.11)
/CCS