TSMC (TPE:2330) and UMC (NYSE:UMC) Helped by Taiwan's Investment Ban Lifting

Taipei, Sep 29, 2009 AEST (ABN Newswire) - Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) (TPE:2330) and United Microelectronics Corporation (UMC) (NYSE:UMC), world's top two contract chip makers, will be helped by Taiwanese government's plan to allow acquiring rivals in mainland China. Today the Taiwan technology stocks were boosted by the news.

Taiwanese firms including AU Optronics (TPE:2409), TSMC and UMC, have urged the government to approve their investment or more advanced technologies in mainland China to help cut costs and compete with global rivals, such as South Korean chipmakers.

Panel makers and chip companies using advanced 0.13 micron process technology would be able to directly invest in China and buy stakes in mainland rivals. China has been seeking for international partners to develop technologies in flat panels and meet and demands of China's huge television market.

Taiwan should lift the ban on investment to China in flat panel and advanced chipmaking, a Taiwanese government official said, while the Taiwanese government has removed barriers on bilateral investment in recent months.

Chinese firms may also be allowed to buy stakes in Taiwanese flat panel and chip makers after the current liberalization measures are reviewed later this year.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net