Taiwan Cancels 7G Output Threshold on Merger Tax Incentive
September 16, 2005
Taiwan's CEPD (Council for Economic Planning and Development) has revised a tax incentive draft meant to encourage mergers in the Taiwanese TFT-LCD industry. The draft had originally required that a 7G production capacity of over 50,000 units must be attained before benefiting from the tax break. The CEPD believed the threshold would further motivate makers to merge in order to pool together the resources necessary for such a target. LCD makers, however, claimed the regulation put any benefit from a merger too far into the future, and that incentives should be available for the 5G and 6G lines currently in use. CDPD finally approved this draft, exclusive of the 7G production target.