Taiwan's semiconductor companies are encouraged to tap the
mainland's booming high-tech sector, which is expecting in turn to
access Taiwan's advanced technology and investment.
Calling it a "win-win deal," Chen Yunlin, director of the Taiwan
Affairs Office of the State Council, said yesterday that increased
economic cooperation across the Taiwan Straits is conducive to
upgrading Taiwan's industries.
Addressing a high-tech Taiwan Straits exchange forum yesterday,
Chen said the economic link-up can also pave a smooth road for
reunification.
However, investment is still capped by a heavy curb on high-tech
outflow to the mainland by Taiwan authorities as they fear losing
their competitive edge in the field. Taiwan is home to a group of
top-notch global semiconductor giants in integrated circuits,
motherboards and chips industries.
But a growing number of Taiwan-based high-tech firms, led by
Shanghai Grace Semiconductor Manufacturing Corp, have managed to
invest in the mainland.
They are lured by cheap land, a huge pool of expertise and a spate
of incentives as operating costs in Taiwan rise. And more companies
are expected to follow suit as the mainland grows into one of the
world's largest high-tech markets, led by the semiconductor
industry. Foreign giants including IBM, NEC, Intel and Microsoft
have already staked ground.
"Development of the micro-electronics business, the core of
information technology, will become a top priority for the mainland
in the next 10 years," said Wu Jichuan, minister of information
industry.
Wu
said incentives in tax, policies and services will be strengthened
to bring in more overseas firms, including those from Taiwan, to
help upgrade the IT sector, still trapped by technology and capital
shortfalls.
The mainland's information technology industry has continued an
over 20 percent annual growth over the last three years, becoming
the key engine for economic growth.
(China Daily 06/07/2001)