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.
EXPRESSING GRATITUDE: Without its Taiwanese partners which are ‘working around the clock,’ Nvidia could not meet AI demand, CEO Jensen Huang said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and US-based artificial intelligence (AI) chip designer Nvidia Corp have partnered with each other on silicon photonics development, Nvidia founder and CEO Jensen Huang (黃仁勳) said. Speaking with reporters after he met with TSMC chairman C.C. Wei (魏哲家) in Taipei on Friday, Huang said his company was working with the world’s largest contract chipmaker on silicon photonics, but admitted it was unlikely for the cooperation to yield results any time soon, and both sides would need several years to achieve concrete outcomes. To have a stake in the silicon photonics supply chain, TSMC and
IDENTITY: Compared with other platforms, TikTok’s algorithm pushes a ‘disproportionately high ratio’ of pro-China content, a study has found Young Taiwanese are increasingly consuming Chinese content on TikTok, which is changing their views on identity and making them less resistant toward China, researchers and politicians were cited as saying by foreign media. Asked to suggest the best survival strategy for a small country facing a powerful neighbor, students at National Chia-Yi Girls’ Senior High School said “Taiwan must do everything to avoid provoking China into attacking it,” the Financial Times wrote on Friday. Young Taiwanese between the ages of 20 and 24 in the past were the group who most strongly espoused a Taiwanese identity, but that is no longer
A magnitude 6.4 earthquake and several aftershocks battered southern Taiwan early this morning, causing houses and roads to collapse and leaving dozens injured and 50 people isolated in their village. A total of 26 people were reported injured and sent to hospitals due to the earthquake as of late this morning, according to the latest Ministry of Health and Welfare figures. In Sising Village (西興) of Chiayi County's Dapu Township (大埔), the location of the quake's epicenter, severe damage was seen and roads entering the village were blocked, isolating about 50 villagers. Another eight people who were originally trapped inside buildings in Tainan
SHARED VALUES: The US, Taiwan and other allies hope to maintain the cross-strait ‘status quo’ to foster regional prosperity and growth, the former US vice president said Former US vice president Mike Pence yesterday vowed to continue to support US-Taiwan relations, and to defend the security and interests of both countries and the free world. At a meeting with President William Lai (賴清德) at the Presidential Office in Taipei, Pence said that the US and Taiwan enjoy strong and continued friendship based on the shared values of freedom, the rule of law and respect for human rights. Such foundations exceed limitations imposed by geography and culture, said Pence, who is visiting Taiwan for the first time. The US and Taiwan have shared interests, and Americans are increasingly concerned about China’s