Taiwan to Rule on Chip Packagers' China Plans -Paper
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Taiwan has agreed in principle to allow  microchip packaging firms to set up units in China, but final  approval will have to wait until local elections are completed  next month, a newspaper said on Monday.
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If Taiwan is to participate in the 2008 Olympic torch relay, it will be on Beijing's terms.
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Taiwan was optimistic about negotiations with China to launch landmark direct flights between the two rivals for next month's Lunar New Year holidays, a government official said.
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Taiwan may have the technology to mass produce mid-range missiles capable of striking Shanghai in two years, a lawmaker said, adding teeth to Premier Yu Shyi-kun&#39;s warning that the island will retaliate if China attacks.
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Chip maker likely is making way for new products.
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(InfoWorld) - Earlier this year, members of Chinese and Taiwanese IT associations announced broad plans to work together to jointly develop and promote Linux as well as home-grown standards for certain IT components. The idea is to match Taiwanâs technology prowess with Chinaâs huge number of users as a base for a global Linux putsch, and to create new standards to compete with global initiatives from Blu-ray to CDMA (Code Division Mutliple Access). At an IT trade show in Shanghai, IDG News Service (IDGNS) caught up with Roger Liao, deputy director of international affairs at one of Taiwanâs biggest industry groups, the Taiwan Electrical and Electronic Manufacturersâ Association (TEEMA), to discuss progress on both fronts, in addition to other IT developments in China. IDG News Service: How is work on Linux progressing? Whatâs popular and whatâs not in Taiwan and China? Liao: It really depends on what kind of product youâre talking about. For example, China really wants to promote Linux as an OS, because itâs more stable. But Microsoft is by far the more popular OS here because people are used to it and it has a larger market share. Microsoftâs recent deal with Novell is another aspect thatâs very interesting, but itâs too early to say how that will affect Linux development and usage in China. Linux is still mostly used in servers and as embedded software in China and Taiwan. A number of Taiwanese companies have opened Linux development centers in China for embedded software development. Although Chinese engineers are less experienced, they are not expensive to hire, and they learn quickly. Even we (TEEMA) use Chinese engineers for all of our software needs, but thatâs mostly our Web site and e-commerce platform. IDGNS: What about the development of new technology standards? Weâve heard a lot about meetings between Taiwanese and Chinese IT associations to create new global technology standards. Whatâs been accomplished so far? Liao: Thereâs not a lot going on so far, just a lot of talking. Developing standards is very difficult, itâs actually a very political issue. Itâs something we (Taiwan-China) always talk about â we even held discussions at the recent APEC meeting (Asia Pacific Economic Cooperation, Hanoi, Nov. 18,19) â but nothing concrete has come from these discussions. Most of our members are manufacturers, contract manufacturers, so they normally wait and see what standard wins out, and then embrace the winner. Thatâs the way itâs been for years, and I donât see it changing anytime soon. IDGNS: Speaking of manufacturing, is the growth of China really hurting Taiwanese manufacturers? Liao: A lot of Taiwanese companies are already using China as a manufacturing base, so theyâre taking advantage of the low costs. But the other issue is quality. Even Chinese companies that are making components on their own, well their quality isnât as good as Taiwan. There are also more risks in doing business with China. Chinese companies will always say âcan doâ even if they canât, which is a problem if your business depends on their delivery. So overall, it may be less expensive on the surface, but other problems such as low quality and business risk in China can increase expenses over the long run, and then it doesnât seem so cheap anymore. Taiwan has been involved in international business for years, particularly in IT. China is rather new to the game, and they still have a lot to learn. Taiwan is actually the best partner for foreigners to approach using China as a manufacturing base and as a market. Japanese companies tend to prefer partnering with Taiwanese companies when entering China. They take advantage of Taiwanâs long experience in China as well as better communication skills (Mandarin is spoken in both Taiwan and China). Itâs more difficult for Japanese companies to do it on their own, the costs are much higher. They definitely can do it, but there is a learning curve and itâs expensive to climb. Taiwan still has a big advantage in know-how, the knowledge of the local people, the education, and the experience with international business practices and standards. (Liao was in Shanghai for a major electronics trade show in China, a three-in-one combo; the China Electronics Fair (CEF Shanghai 2006), Asia Electronics Exhibition in Shanghai (AAES 2006), and the 2006 International Electronics Expo (IEE Shanghai 2006).ADVERTISEMENTNEW IT SERVICES FROM IBM: EASIER TO BUY AND IMPLEMENTDiscover a simpler, more cost-effective way to get the solutions your company needs to grow more flexible and efficient.
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Taiwan test-fired a cruise missile capable of hitting Chinese territory last month, a newspaper reports.
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TAIPEI - China is likely to have 800 ballistic missiles targeting Taiwan before the end of 2006, Taipei&#39;s defence minister said yesterday as he pressed the case for an US$18-billion ($30.
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The world&#39;s top telecoms equipment makers may have to settle for just a fraction of the multi-billion-dollar orders they had expected when China builds its next-generation mobile phone networks.
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Taiwan's lawmakers are expected to give their long-delayed approval next month to a special budget for U.S. weapons purchases worth as much as &#36;15 billion, Taiwan's point man on China policy said on Wednesday.
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(InfoWorld) - Taiwanese chip assembler Advanced Semiconductor EngineeringÂ (ASE) plans to invest $60 million in a low-end chip assembly company based in China. ASE's board of directors approved a plan to invest in Global Advanced Packaging Technology, a Shanghai company, ASE said Thursday. ASE will need approval from Taiwanese regulators to move forward on the investment due to strict regulations meant to keep Taiwanese technology from ending up in missiles and other military hardware aimed at the island by rival China. Taiwan and China remain enemies after splitting in 1949 amid civil war. Despite the strained relationship andÂ tough investment rules, China remains by far the favored destination for Taiwanese investment due to their shared language and culture, and China's lower costs and huge potential market. Currently, ASE has no chip assembly investments in China, despite the fact that earlier this year Taipei gave a green light to chip makers to invest in low-end chip assembly. Although the government announced it would allow such investments, not a single application has been approved by Taipei, and companies remain unsure of how to apply to regulators. Analysts say that the approval process remains very much subject to politics in Taiwan, due mainly to the rivalry with China. In related news, ASE said it will form a special committee to evaluate aÂ possible $5.5 billion dealÂ to be bought out by a consortium led by The Carlyle Group. So far, ASE has only received an indication of interest from Carlyle, not a formal offer. The deal could transform ASE into a U.S. company, where Carlyle is based, thereby allowing ASE to invest in China without asking Taipei for permission. China's growing electronics industry requires chips, and chip assembly factories nearby can help ensure quick placement inside gadgets. Carlyle's interest in ASE is also a sign of the times. There have been a string of private equity deals in the chip industry recently. A few months ago, Carlyle was part of a team that sealed a deal to buy Freescale SemiconductorÂ for $17.6 billion, while Koninklijke Philips ElectronicsÂ sold a majority in its chip unit to another group for around $10.6 billion. Â ADVERTISEMENTNEW IT SERVICES FROM IBM: EASIER TO BUY AND IMPLEMENTDiscover a simpler, more cost-effective way to get the solutions your company needs to grow more flexible and efficient.
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The landmark PC deal between IBM and the China-based Lenovo Group is expected to lead to a redistribution of OEM desktop- and notebook-PC orders among Taiwan makers, the Chinese-language Economic Daily News (EDN) reported today.
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The Chinese government has given Intel permission to build a $2.5 billion chip-manufacturing plant in Dalian, on China's northeastern coast.
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(InfoWorld) - Four Taiwanese chip assembly companies have won finalÂ approval to invest in ChinaÂ amid a global shake-up that could see a new king crowned in the industry. The companies, which package and test chips before they are sold, can now move ahead with US$99.6 million in planned investments to China. The decision by Taiwan to allow the investments came more quickly than expected, amid rumors that a group of private equity firms may be building a global titan to compete with Taiwan's star chip assembler, Advanced Semiconductor EngineeringÂ (ASE). ASE was among the companies approved for the investments, and allowing it to build more factories in China will help it to stave off potential new rivals by giving it access to China's lower-cost labor market. The investments will also help the Taiwanese companies take part in China's growing chip industry. Taiwan granted permission for the investments to ASE, the world's largest assembly company, and three smaller rivals: Siliconware Precision Industries Co., Greatek Electronics, and Walton Advanced Engineering. Taiwanese companies are required to gain approval for high-tech investments in China because Taipei fears the technology may boost the military threat against the island. Taiwanese chip assemblers have been at odds with regulators for years over the slow pace of China investment approvals. Taipei appeared to give ground in the middle of last year, saying it would start allowing such investments, then continued dragging its feet on most applications. RecentÂ consolidation in the sectorÂ may have finally prompted regulators to act. Earlier this week, one of Taiwan's biggest financial newspapers, the Economic Daily News, reported that a deal by two private equity firms to buy Singapore's United Test and Assembly CenterÂ (UTAC) could result in a merger with the world's second largest chip assembly company, Amkor Technology, which could threaten ASE's dominance. Affinity Equity PartnersÂ and Texas Pacific Group Capital agreed to buy UTAC for around S$2.2 billion (US$1.43 billion). The Singapore offices of both investment firms declined to comment Thursday on the Amkor rumors, though the talk appears to have moved Amkor's stock price. Its shares have climbed 5.2 percent so far this week to end at US$15.44 Wednesday on the Nasdaq Stock Market, compared to a 0.6 percent rise in the Nasdaq Composite Index over the same time. Analysts say the chip assembly sector has become more attractive to investors due to steadier profits. In other deals this year, Singapore's Temasek HoldingsÂ made a S$2.4 billion (US$1.56 billion) bid for Stats ChipPac. The Carlyle Group, another private equity firm, in AprilÂ scrapped a US$5.5 billion deal to buy ASEÂ after the two companies failed to agree on a higher offering price. ASE displaced U.S-based Amkor as the world's largest chip packaging and testing company at the end of 2003, highlighting the exodus of chip production to lower-cost Asian countries. But since then Amkor has been making investments in China, while ASE has been largely held back by Taiwanese regulators. Analysts view China as an important location for chip investment because of its lower costs and growing clout in the industry.Â Intel announced a planÂ in March to spend US$2.5 billion on a plant in China to take advantage of lower production costs there. Taiwan's chip makers say the heavy regulations they face at home have put them at a disadvantage in China. Labor makes up a significant portion of the costs in chip assembly -- around 20 percent, compared to around 5 percent for actual chip fabrication. Fabricators etch transistors and other components on chips, while assemblers package the chips inside protective coating. Taipei's approval on Thursday gives ASE the green light to invest US$21.6 million for a 60 percent stake in a venture with NXP Semiconductors in Suzhou, China. Regulators also approved investments of US$30 million by Siliconware and US$18 million by Walton in the same place. Greatek received permission to invest US$30 million in Jiangsu, China. "We are happy to see the news. We have been waiting for this," said Janet Chen, a spokesperson at Siliconware. Taiwan and China remain enemies after splitting in 1949 amid civil war, the reason Taipei remains wary of allowing certain high tech investments to the mainland. Despite their strained relationship, China remains the favored destination for Taiwanese investment due to their shared language and culture, as well as China's lower costs and incentives for building factories. As part of their China applications, the four Taiwanese companies all included plans to continue investing at home. In all, they pledged to invest NT$75 billion (US$2.29 billion) in Taiwan over the next three years, including NT$40 billion from ASE, NT$20 billion from Siliconware, NT$10 billion from Greatek and NT$5 billion from Walton. Â
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Next week's Computex trade show is where Taiwan's most influential hardware makers -- those who make systems for Hewlett-Packard and Dell, among others -- will tip upcoming trends and wares to be released later this year.
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(InfoWorld) - Chinese companies will be welcome to exhibit at Taiwan's annual Computex IT next year, the show's organizers said Saturday. The announcement came as organizers revealed a 10 percent increase in the number of foreign visitors at this year's show compared to last year. About 33,000 visitors from overseas attended this year's fair versus 30,275 last year, said Walter Yeh, executive vice president of the Taiwan External Trade Development Council, at a Taipei news conference held as the fair ended its five-day run. Local visitor numbers saw a more modest increase from 100,177 last year to around 103,000 this year, he said. Both figures were a little above organizer targets. The rise in visitor numbers is impressive given the weather that Taipei has been experiencing this week. The usually hot and humid weather seen during early June was replaced this year by day after day of torrential rain that has caused deadly landslides elsewhere on the island. "We will make good arrangements with heaven," Yeh said of Computex 2008. Next year's show will see exhibitors split between the four exhibition halls that currently house the expo and a new center some distance away. Organizers hope to arrange shuttle buses to take people between the sites and estimate it will take 15 minutes -- a possibly optimistic goal given anecdotal journey times this week of around 30 minutes. The organizers are yet to decide how they will split the show but promise the new space will mean next year's show will see around 4,500 booths versus the 2,926 at Computex 2007. Yeh said the show this year had waiting list about 500 companies long, so Computex 2008 should not only mean they are welcome but will also signal the opening of the show's doors to companies from China. Until now, Chinese companies have not been welcome at the Taiwanese show due to space issues, said Yeh. "We don't have enough space, but next year, we will have space," he said. "Some of their best manufacturers can be here, we will welcome them." Yeh added he is confident that Chinese companies will appear at Computex 2008. China and Taiwan separated in 1949 during a civil war between the Nationalist army of Chiang Kai-shek and the Communist forces of Mao Zedong. The two sides never reconciled, and China has repeatedly threatened to attack Taiwan if the island formally declares independence from the mainland.
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China will seek bids from overseas nuclear-equipment makers to build reactors in the country, said Shen Lixin, an official at China National Nuclear Corp.