Taking measures to lift the country's equipment self-sufficiency rate in the panel and semiconductor industry, the Taiwanese government plans to repeal the import duty for key components used in panel and semiconductor equipment not produced in Taiwan. The plan will take effect in 2005, while the two industries' equipment domestic self-sufficiency targets for 2008 are set at 50% and 25% for panel and semiconductor, respectively.

 

Starting from 2005, the government will also allocate around NT$100 million (US$3 million; US$1 = NT$33) per year to subsidize Taiwanese equipment makers' plans in elevating their R&D capability. To support domestic-made equipment, the government is drafting plans as well to reward makers who adopt a certain percentage of domestic-made equipment.

 

Korean equipment makers currently comprise 40% of equipment supplied to Korean panel makers; Korea plans on expanding this figure to 80% by 2008. By contrast, Taiwanese equipment makers provide only 12% of all domestic panel equipment.

 

Taiwanese panel makers Chi Mei, Hannstar, and CPT have expressed interest in lifting domestic procurement of equipment. Chi Mei has already taken aggressive steps in this direction, hoping to eventually procure 30% of its production equipment domestically.