The Investment Commission has approved a plan by Taiwan Semiconductor Manufacturing Co. (TSMC) to open a plant in China. The commission formally accepted the plan on Wendesday.
The plant, expected to open in the Chinese city of Nanjing, will become the largest ever Taiwanese investment in Mainland China. TSMC will put US$3 billion into the project. The plant will be able to produce 20,000 12-inch wafers a month once it is operational.
In the proposal for the plant, TSMC has also promised to invest NT$860 billion (US$25 billion) in Taiwan between 2016 and 2018. The company has also promised to add 2,500-3,500 workers to its Taiwan-based workforce annually.
According to the Economics Ministry, the plan has been approved on five conditions. Among the restrictions is a requirement that the technology used in the plant must be more than a generation behind that used in Taiwan.