The Ministry of Economic Affairs (MOEA) of Taiwan has officially lifted all bans on panel makers investing in China regarding the size of production plants or investment in China-based panel makers.

The MOEA indicated that panel makers who wish to acquire or invest in China-based TFT-LCD panel makers should have a legal company in Taiwan and have related investment in Taiwan. Invested China-based panel makers will need to pay royalty fees to the Taiwan company.

Furthermore, Taiwan panel makers will need to gain the leading position in the global market or expand market share through investing or acquiring China-based panel makers, and help to increase revenues or profits of the Taiwan panel makers. MOEA noted that Taiwan panel makers are not allowed to layoff Taiwan employees due to the investment in China-based panel makers.

The MOEA emphasized that the previous-generation limitation for setting up production plants in China has changed to allow panel makers to set up production plants in China at the same level as in Taiwan, up to three plants.

Allowing panel makers to acquire and invest in China-based panel makers can help to boost strategic alliances between Taiwan and China panel makers and help to gain market share and capacity in the China market.