Taiwan opposition leader calls China's Unigroup investment plans "a huge threat"

Powertech Technology

15/12/2015 09:10

TAIPEI, Dec 15 (Reuters) - Plans by Chinese state-backed 
giant Tsinghua Unigroup to invest $2.6 billion in Taiwan pose a 
"huge threat" to the island's semiconductor industry, the 
frontrunner in January presidential polls said on Tuesday, 
flagging possible hurdles for the deals. 
    Long-standing political tension between the neighbours has 
seen Taiwan put restrictions on Chinese investments in its 
prized semiconductor sector, with an eye to protecting 
intellectual property and trade secrets. 
    The comments by Tsai Ing-wen, leader of the 
independence-leaning Democratic Progressive Party (DDP), which 
is detested by China, signal regulatory obstacles ahead for 
Unigroup's ambition to take control of three Taiwan chip firms.  
    "Unigroup has government capital and influence backing it," 
Tsai, who retains a double-digit lead in opinion polls against 
her rivals going into the election, told reporters. 
    "Its entry into Taiwan not only is an issue of control in 
individual companies, but also the power in gaining key control 
of the upstream and downstream industry. So the threat to 
Taiwan's industry is very large." 
    Unigroup plans to take a stake of about 25 percent in each 
of three chip test and packaging firms based in Taiwan: ChipMOS 
Technologies Inc  8150.TW , Siliconware Precision Industries Co 
Ltd (SPIL)  2325.TW  and Powertech Technology Inc  6239.TW . 
    The deals have yet to secure shareholder and regulatory 
approvals in Taiwan, however.  urn:newsml:reuters.com:*:nL3N1403BT  urn:newsml:reuters.com:*:nL3N12U48M 
    Unigroup's plans are "full of serious problems", Tsai added, 
and warned against rushing the deals through regulatory review. 
Until doubts over the investments are resolved, there will be 
little room for their clearance, she said. 
    Unigroup was not immediately available for comment. Last 
month, Tsinghua Unigroup Chairman Zhao Weiguo told Reuters he 
would focus on investing in the United States, instead of 
Taiwan, citing the island's regulatory hurdles.  urn:newsml:reuters.com:*:nL3N13B29S 
    China views self-ruled Taiwan as a renegade province and has 
not ruled out the use of force to bring it under its 
control. urn:newsml:reuters.com:*:nL3N1442Y4 
    Ties have improved since President Ma Ying-jeou of the 
China-friendly ruling Nationalists (KMT) took power in 2008, but 
he steps down next year.  
    Taiwan votes in a new president and parliament in January 
when the KMT is expected to be soundly beaten by the DPP, 
supported by youthful voters angered by a perceived economic 
dependence on the mainland. 
    The DPP is loathed by Communist Party rulers in Beijing 
because the party believes the future of Taiwan is for its 23 
million people to decide, which Beijing takes to mean 
independence.  urn:newsml:reuters.com:*:nL3N1402EL 
 
 (Reporting by J.R. Wu; Editing by Clarence Fernandez) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: TAIWAN POLITICS/SEMICONDUCTOR