Despite strong opposition from a few legislators and a group of academics, the government has reached an inter-ministerial consensus to allow chipmakers to set up eight-inch wafer fabs in China.
When briefing lawmakers yesterday, officials from several government agencies confirmed that the government is working toward lifting the ban and a policy will be finalized by the end of the month.
Lawmakers yesterday spoke with representatives from the Ministry of Economic Affairs, National Science Council, Mainland Affairs Council (MAC), central bank, Ministry of Finance and Ministry of Justice.
Christine Tsung (宗才怡), minister of economic affairs, said lifting the ban is the "most urgent" matter facing the nation today, as Taiwan risks losing its competitive edge in the semiconductor industry within two years.
Even if the ban on eight-inch wafer fabs is lifted today, Tsung said, Taiwanese firms will lag rivals such as Shanghai-based Semiconductor Manufacturing International Corp by 26 months. It takes up to 43 months to get an eight-inch fab up to full speed, Tsung said.
Wei Che-ho (魏哲和), chairman of the National Science Council, said there are both advantages and disadvantages in allowing Taiwanese firms to set up shop across the Strait.
Wei said the government needs to consider the market from a global perspective and Taiwan's place in the industry. If the government continues to prohibit local chipmakers from investing in China, Wei said, they may just go there anyway.
Wei said the government should require Taiwanese investors to use old equipment and chipmaking tools in setting up fabs in China. In addition, Taiwanese firms should acquire their capital from abroad and continue to invest in 12-inch fabs in Taiwan, Wei said.
These steps would allow Taiwan to maintain its competitiveness over China, Wei said.
Lawmakers opposed to lifting the ban repeated fears that Taiwan's security would be threatened if eight-inch fabs are allowed to move across the Strait.
DPP lawmaker Chen Chao-lung (
The lawmaker also noted that China has never renounced the use of force against Taiwan.
Mark Chen (
In addition, the move will lead to the hollowing out of the chip industry, the lawmaker argued, saying that when capital leaves the country it never returns.
But business leaders have pshawed those claims, saying that much of the debate by critics outside the chip industry has been driven by ignorance and emotional arguments.
There are 23 eight-inch wafer fabs in Taiwan -- six of which have shut down because of a worldwide industry slump and have yet to re-open.
John Deng (鄧振中), MAC vice chairman, assured dissenting lawmakers yesterday that lifting the ban would not affect the development of Taiwan's semiconductor industry, as long as the government carefully monitors the situation.
Deng said the government would take into account national and economic security as well as cross-strait competition when forming policy on chip investments in China.
While Taiwanese firms would be required to leave R&D in Taiwan, they would also be limited to setting up older, eight-inch fabs that use an etching process of 0.25 microns or larger, Deng said.
Tsung said Taiwanese firms would just move idle facilities to China and that Taiwanese firms would be allowed to set up no more than three fabs in China.
Tropical Storm Usagi strengthened to a typhoon yesterday morning and remains on track to brush past southeastern Taiwan from tomorrow to Sunday, the Central Weather Administration (CWA) said yesterday. As of 2pm yesterday, the storm was approximately 950km east-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost point, the CWA said. It is expected to enter the Bashi Channel and then turn north, moving into waters southeast of Taiwan, it said. The agency said it could issue a sea warning in the early hours of today and a land warning in the afternoon. As of 2pm yesterday, the storm was moving at
DISCONTENT: The CCP finds positive content about the lives of the Chinese living in Taiwan threatening, as such video could upset people in China, an expert said Chinese spouses of Taiwanese who make videos about their lives in Taiwan have been facing online threats from people in China, a source said yesterday. Some young Chinese spouses of Taiwanese make videos about their lives in Taiwan, often speaking favorably about their living conditions in the nation compared with those in China, the source said. However, the videos have caught the attention of Chinese officials, causing the spouses to come under attack by Beijing’s cyberarmy, they said. “People have been messing with the YouTube channels of these Chinese spouses and have been harassing their family members back in China,”
UPDATED FORECAST: The warning covered areas of Pingtung County and Hengchun Peninsula, while a sea warning covering the southern Taiwan Strait was amended The Central Weather Administration (CWA) at 5:30pm yesterday issued a land warning for Typhoon Usagi as the storm approached Taiwan from the south after passing over the Philippines. As of 5pm, Usagi was 420km south-southeast of Oluanpi (鵝鑾鼻), Taiwan proper’s southernmost tip, with an average radius of 150km, the CWA said. The land warning covered areas of Pingtung County and the Hengchun Peninsula (恆春), and came with an amended sea warning, updating a warning issued yesterday morning to cover the southern part of the Taiwan Strait. No local governments had announced any class or office closures as of press time last night. The typhoon
The Central Weather Administration (CWA) yesterday said there are four weather systems in the western Pacific, with one likely to strengthen into a tropical storm and pose a threat to Taiwan. The nascent tropical storm would be named Usagi and would be the fourth storm in the western Pacific at the moment, along with Typhoon Yinxing and tropical storms Toraji and Manyi, the CWA said. It would be the first time that four tropical cyclones exist simultaneously in November, it added. Records from the meteorology agency showed that three tropical cyclones existed concurrently in January in 1968, 1991 and 1992.
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