From The Wall Street Journal:
Taiwan has given approval for three semiconductor companies to invest a combined US$825 million in China, a sign Taipei is softening its long-standing opposition to high-tech investment by domestic firms in its political rival.
A cross-ministerial committee late Monday approved a US$400 million investment by Powerchip Semiconductor Corp. and a US$365 million investment by ProMOS Technologies Inc. Both companies make memory chips. The committee also approved a US$60 million investment by Advanced Semiconductor Engineering Inc., among the world’s biggest chip-assembly companies.
Like manufacturers around the globe, Taiwanese chip companies have been eager to shift their manufacturing base to lower cost centers such as China because of increasing competitive pressure. But Taiwanese companies have been at a disadvantage, given the tight curbs the island’s government places on investment in China.[Full Text]