Taiwan eases restriction on investment in foundries in mainland

Taiwan authorities eased a restriction on local wafer foundries' investment in China on December 29, by allowing them to produce eight-inch wafers using 0.18 micrometer technology there. The decision was announced jointly by the Ministry of Economic Affairs and the Mainland Affairs Council.

  Minister of Economic Affairs Steve Chen told a news conference on the evening of December 29 that the 1996 Wassenaar Arrangement -- which controls the international transfer of conventional arms and dual-use goods and technologies -- downgraded in 2004 the restriction on exports of semiconductor manufacturing technologies from producing wafers with lines 0.35 micrometer wide to wafers with lines 0.18 micrometer wide.

  The United States has thereby revised its list of technologies forbidden for export accordingly, and no longer restricts the export of semiconductor manufacturing equipment for wafers using 0.18 micrometer technology, Chen said.

  Against this backdrop, the minister said forbidding Taiwan 's foundries to produce wafers with 0.18 micrometer technology will only limit their ability to compete against their foreign counterparts in China , but will not prevent China from getting this technology from elsewhere.

  As a matter of fact, the minister said, half of Chinese semiconductor products are using or designed with the 0.18 micrometer or 0.13 micrometer process, Taiwan producers will hardly survive there without using technology that is on par with their Chinese counterparts.

  Noting that Taiwan already has 10 foundries turning out 10-inch wafers with lines 90 nanometers to 65 nanometers in width -- which is four generations ahead of the 0.18 micrometer technology -- Chen said the transfer of the 0.18 micrometer process will not threaten Taiwan's global leadership in this industry.

  Chen said this technology, after being transferred to China , can only be used in foundries operated and controlled by the Taiwan firms, and only with the Ministry of Economic Affairs' approval could these Taiwan-controlled foundries cooperate with Chinese companies on non-essential technology in the manufacture of wafers.

(Source: Central News Agency)