Taiwan's dilemma across the strait - Lifting the ban on semiconductor investment in China

Abstract

For more than two decades, Taiwanese semiconductor manufacturers have been banned from investing in China. There was a heated debate in 2001-02 for several months over whether to lift the ban. The purpose of this study is to report the dilemma that the Taiwanese government faced during the debate, and the decision-making process of allowing Taiwanese integrated circuit foundries to invest in China.