Asia Express - Consumer Electronics
TSMC to Take 8% Stake in SMIC
July 02, 2010
Taiwan's Investment Commission under the Ministry of Economic Affairs has approved on June 28, 2010 the application filed by TSMC to acquire 8% stake in the China-based SMIC (Semiconductor Manufacturing International Corporation), according to Economic Daily News of Taiwan. As part of the legal settlement reached in November 2009 between TSMC and SMIC, it is expected that TSMC will receive approximately 8% of SMIC's shares. This is the first application approved by the Taiwanese government to allow companies to take stakes in China-based 12-inch wafer foundry, according to the same source. Direct investments, however, are still prohibited.

Under the new regulations which took effect on February 26 this year, Taiwanese companies are now allowed to acquire stakes in Chinese semiconductor companies which operate with technologies at least two generations behind the Taiwanese companies.