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Taiwan To Review China Investment By Chip, LCD Firms - Official



TAIPEI -(Dow Jones)- Taiwan will review a plan next month to ease restrictions on investments in China by the island's semiconductor and liquid-crystal-display panel makers, an official from the Ministry of Economic Affairs said Thursday.

"We are making preparations right now for further discussions in December...We hope to come to a decision as soon as possible," said the official, who asked not to be named. He declined to say if a decision would be reached by the end of the year.

Taiwan Premier Wu Den-yih said the government may allow local companies to invest in flat-panel manufacturing and semiconductor operations in China if they also increase their investments in Taiwan, the Economic Daily News reported Thursday.

The island doesn't allow LCD panel makers to set up panel factories in China, but they are allowed to assemble monitors there.

Some Taiwan companies have called for the Taiwan government to loosen restrictions on the island's chip and flat-panel industries, as major chip makers such as Intel Corp. and flat-panel makers including Samsung Electronics Co. have built or plan to build advanced factories in China.

-By Charmian Kok, Dow Jones Newswires; 88622 502-2557; charmian.kok@ dowjones.com


  (END) Dow Jones Newswires
  11-19-090223ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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