Taiwan government had authorized the domestic industry doing investment in China since 1991. However, the Chinese capital is not allowed to do investment in Taiwan until 2009. From 1991 till now, no matter it is capital, technology or talent, there is only one-way investment from Taiwan, not the other side, which resulted in the unbalanced investment between Taiwan and China.
From June, 2009 to March, 2014, Taiwan had gone through 3 stages of opening investment for Chinese capital. Until now, the accumulated investment cases are 597, with around total USD 877 million capitals. Nevertheless, it is not the expected result for this almost 5 year investment open-up policy. The major reason is Taiwan government is slow and hesitates in the opening of Chinese capital investment in high technology industry such as semi-conductor and energy industry which restricted the willingness of Chinese capital coming to Taiwan.
For these years, China government puts major focus on development of semi-conductor related industry. Both inbond and outbond investment are encouraged by China. Taiwan semiconductor industry is one of the key investment items which draw many attentions from Chinese capital. Therefore, the policy to Chinese capital investment in semi-conductor manufacture and related assembly and testing shall be opened up gradually and conditionally.
The purpose of this thesis is bringing out the comparison, which is referring to South Korea and Singapore inbond policy and China economy cross-strait relations regulation, as Taiwan’s reference in making policy toward Chinese capital investment.
For sure, there will be Pros and Cons for releasing the bar of Chinese capital investment. However, the capital of continuous development in semi-conductor related industry is extremely high. Under this circumstance, Taiwan shall conditionally leverage the Chinese capital in semi-conductor related industry and have further cross-strait cooperation no matter in market, supply chain or talent which will help Taiwan enhance the industrial development and explore the global market share.