Taipei (The China Post/ANN) - Taiwan is expected to open more of its manufacturing sector to Chinese investment in March, said the Ministry of Economic Affairs (MOEA) yesterday.
Currently, only 42 per cent of the island's manufacturing sector is open to Chinese investment, and the government seeks to lift the number to 90 per cent, the ministry said.
Last year Chinese capital invested US$42 million in Taiwan, bringing the total to US$150 million since Taiwan first opened itself to Chinese investment.
Last year, MOEA allowed Chinese companies to either partially invest in or form joint ventures with local firm on semiconductor manufacturing, semiconductor testing/packaging, LCD manufacturing, machine tool manufacturing and semiconductor equipment manufacturing.
However, Chinese capital can hold stakes of no more than 10 percent in existing companies in the above-mentioned industries. For joint ventures, Chinese capital can hold a stake of no more than 50 percent. These restrictions have elicited complaints by Chinese firms.
As a result, the Taiwan government is also planning to relax these restrictions in March. The restrictions however will still be in place due to the sensitive nature of the technology involved, MOEA said.
Also in March, the government is expected to open Taiwan's light-emitting diode (LED) industry to Chinese investment.
According to MOEA, it is considering opening the downstream segment of the LED industry to Chinese capital, which can then team up with Taiwan's mid- and upstream LED operators to form a complete and seamless supply chain.
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