TAIPEI, Taiwan (AP) — Taiwan's computer chip industry will likely maintain its edge over China until at least 2020, despite a massive capital and manpower infusion from the mainland, a researcher said Monday.
Tu Tze-chen, general director of Taiwan's Industrial Technology Research Institute Industrial Economics and Knowledge Center, said that a high threshold of experience required for picking up advanced chip technology will also prevent China from catching up soon.
Tu said China's own chip companies are disadvantaged as they are spread out, while the country's top talents seek employment by foreign companies investing in China and shun Chinese firms which pay less.
Taiwan and China split amid civil war in 1949. The Taiwanese government strictly regulates investments by the island's technology firms in China and bars chipmakers from using the latest process technologies at Chinese facilities.
Taiwan's chipmakers are exerting pressure on the government to liberalize the environment for technology transfer and to allow the use of more advanced technologies in their Chinese plants.