VZCZCXRO4937
RR RUEHGH
DE RUEHIN #0073/01 0110134
ZNR UUUUU ZZH
R 110134Z JAN 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3678
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUCPDOC/USDOC WASHDC
RUCPCIM/CIM NTDB WASHINGTON DC
RUEHBK/AMEMBASSY BANGKOK 3522
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RUEHUL/AMEMBASSY SEOUL 8374
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RUEHML/AMEMBASSY MANILA 9890
RUEHJA/AMEMBASSY JAKARTA 3977
RUEHKL/AMEMBASSY KUALA LUMPUR 3627
RUEHHI/AMEMBASSY HANOI 3191
RUEHBY/AMEMBASSY CANBERRA 4411
RUEHWL/AMEMBASSY WELLINGTON 1674
RUEHHK/AMCONSUL HONG KONG 7412
RUEHGH/AMCONSUL SHANGHAI 0688
RUEHGZ/AMCONSUL GUANGZHOU 9869

UNCLAS SECTION 01 OF 09 TAIPEI 000073 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS USTR 
STATE FOR EB/IFD/OIA, EAP/RSP/TC, EAP/EP 
USTR FOR ALTBACH and Stratford 
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT 
TREASURY FOR OASIA/LMOGHTADER 
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF 
GOVERNORS, AND SAN FRANCISCO FRB/TERESA CURRAN 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ECON PINR OPIC KTDB USTR TW
SUBJECT: Taiwan's 2007 Investment Climate Statement (Part II) 
 
REF: 06 STATE 178303 
 
This is the second part of Taiwan's 2007 Investment Climate 
Statement. The first part has been sent septel. 
 
---------------------------------- 
¶B. Bilateral Investment Agreements 
---------------------------------- 
 
¶39.  Taiwan has concluded bilateral investment guaranty agreements 
with the following 26 countries: Argentina, Belize, Burkina Faso, 
Costa Rica, Dominica, El Salvador, Guatemala, Honduras, India, 
Indonesia, Liberia, Malaysia, Macedonia, the Marshall Islands, 
Nicaragua, Nigeria, Panama, Paraguay, the Philippines, Saudi Arabia, 
Senegal, Singapore, Swaziland, Thailand, Malawi, and Vietnam.  In 
addition, there is an agreement to guaranty Taiwan's investment in 
Malawi and other agreements to protect U.S. investment in Taiwan 
(see next paragraph).  (An agreement with Latvia signed in 1992 was 
revoked in August 2004.) 
 
¶40.  Under the terms of the 1948 Friendship, Commerce, and 
Navigation Treaty with the United States, U.S. investors are 
generally accorded national treatment and are provided with a number 
of protections, including protection against expropriation.  Taiwan 
and the United States also have an agreement, signed in 1952, 
pertaining to investment guarantees that serve as the basis for the 
U.S. Overseas Private Investment Corporation (OPIC) program in 
Taiwan.  In September 1994, representatives of the United States and 
Taiwan signed a bilateral Trade and Investment Framework Agreement 
(TIFA) to serve as the basis for consultations on trade and 
investment issues.  Consultations on a bilateral investment 
agreement between the United States and Taiwan began in 1996, and 
the latest round took place in Taipei in 2006. 
 
--------------------------------------------- -- 
¶C. OPIC and Other Investment-Insurance Programs 
--------------------------------------------- -- 
 
¶41.  OPIC programs are available to U.S. investors, though U.S. 
investors have never filed an OPIC insurance claim for an investment 
in Taiwan.  Taiwan is not a member of the Multilateral Investment 
Guaranty Agency. 
 
-------- 
¶D. Labor 
-------- 
 
¶42.  As a result of Taiwan's changing industrial structure, labor 
shortages exist in hi-tech fields including semiconductor and 
computer chip design and production, computer software design, flat 
panel and display manufacturing, network-related technology, and 
telecommunications engineering.  To address this issue, Taiwan has 
removed the job experience requirement for foreigners with graduate 
degrees and relaxed restrictions on hiring foreign students or 
recent graduates as interns.  Taiwan began employment of foreign 
blue-collar workers in 1990 when Taiwan was a full employment 
economy with labor shortages.  However, in the early 2000s, the 
relatively high unemployment rate prompted the authorities to 
restrict employment of foreign workers, reducing foreign workers in 
Taiwan by eight percent between 2000 and 2003.  Economic expansion 
in 2004 prompted Taiwan authorities to slightly relax restrictions 
and foreign workers in Taiwan rose 4.6% to 314,034 persons in 2004 
and 4.2% to 327,396 persons in 2005. 
 
¶43.  There are no special hiring practices in Taiwan.  Wages 
typically include a one-month bonus at the end of a year.  Fringe 
benefits often include meals, transportation, and dormitory housing. 
 
TAIPEI 00000073  002 OF 009 
 
 
 Dividend-sharing is common among high-tech industries which, 
however, will be reduced in response to foreign portfolio investors' 
request.  A standard labor insurance program is mandatory.  The 
program provides maternity, retirement, and other benefits.  A new 
retirement system implemented in July 2005 abolishes the voluntary 
retirement scheme under an old system which still covers 30% of 
total employment population.  The old system grants employees with 
voluntary retirement at age of 55 years and a length of service of 
15 years.  Employees hired after July 2005 must join the new system 
with the retirement age being 60.  The new system requires employers 
to contribute six percent of their monthly wage to accounts at 
designated banking institutions.  The accounts follow employees 
transferred from one employer to another.  A universal national 
health insurance system covers all employees and their families. 
 
¶44.  Taiwan provides unemployment relief based on the Employment 
Insurance Law enacted in 2002.  Alternatives for unemployment pay 
include vocational training allowance for jobless persons and 
employment subsidies to encourage employment of jobless persons. 
The Labor Standards Law (LSL) sets a standard eight-hour workday and 
a biweekly maximum of 84 hours.  Legislation adopted in late 2000 
set a five-day workweek for the public sector, effective January 
¶2001.  Over half of private firms have adopted the five-day 
workweek.  The LSL restricts child labor and requires employers to 
provide overtime pay, severance pay, and retirement benefits.  The 
LSL covers both manufacturing and service sectors.  Violators are 
liable to criminal penalties (jail terms) and administrative 
punishments (fines). 
 
¶45.  The minimum wage is set at NT$15,840 (US$487) per month. 
Current manufacturing sector wages average NT$43,958 (US$1,353).  In 
principle, the minimum wage is adjusted in August every year based 
on the results of collective negotiation between the Chinese 
National Federation of Industries and the Chinese Federation of 
Labor Unions.  However, for the past eight years, the minimum wage 
has not been adjusted. 
 
¶46.  Labor unions have become more active and independent since 
Taiwan's martial law was lifted in 1987.  Privatization and the new 
retirement system contributed to an increase in labor disputes in 
¶2005.  Taiwan is not a member of the International Labor 
Organization (ILO) but generally adheres to the ILO convention in 
protection of worker's rights. 
 
--------------------------------- 
¶E. Foreign Trade Zones/Free Ports 
--------------------------------- 
 
¶47.  The first free trade/free port zone began operation at Keelung, 
Taiwan's northern port, in November 2004.  Another four have been 
established in 2005.  These four are located at Taoyuan 
International Airport and the international harbors in Kaohsiung, 
Taichung, and Taipei.  Taiwan authorities have relaxed restrictions 
on movement of merchandise, capital and personnel into and out of 
such zones.  Foreign investors are accorded national treatment. 
 
--------------------------------------- 
¶F. Foreign Direct Investment Statistics 
--------------------------------------- 
 
¶48.  Statistics on foreign direct investment in Taiwan are available 
from two sources.  The Investment Commission (IC) publishes monthly 
and yearly foreign investment approval statistics by industry and by 
country.  Taiwan's Central Bank of China (CBC) publishes foreign 
direct investment arrivals on a quarterly and yearly basis.  CBC 
data, contained in balance-of-payments (BOP) statistics, are not 
further classified by industry or country. 
 
TAIPEI 00000073  003 OF 009 
 
 
 
¶49.  In 2005, excess inventory worldwide (particularly electronic 
products) caused Taiwan's export growth to decline to a single-digit 
rate from over 20% in 2004.  Taiwan's private investment declined in 
2005 after over 30% growth in 2004.  Consequently, Taiwan's real GDP 
growth slowed from 6.1% in 2004 to 4.0% in 2005. 
 
¶50.  In 2006, strong recovery of Taiwan's export sector far offset 
adverse effects of delinquent credit/cash card debt problems which 
dampened private consumption in the first half of the year.  Growth 
in exports, which account for over 60% of Taiwan's GDP, accelerated 
from 8.8% in 2005 to 12% in the first quarter and further to 19% in 
the third quarter.  Taiwan authorities estimate economic growth for 
2006 will rise to 4.4%, and private investment will grow in the 
second half of the year.  In 2006, approved FDI in the first ten 
months nearly tripled over the same period of 2005 to US$11.23 
billion.  Approved FDI so far this year was concentrated in 
electronics, banking, science and technology services, and trade. 
These four categories accounted for nearly 90% of total approved 
FDI. 
 
¶51.  Approved direct investment in electronics industries (including 
communications, semiconductor, TFT-LCD and other optical electronic 
projects) increased from 6.4% of total approved FDI prior to 1995 to 
19% in 1996-2000 and further to 24.5% in 2001-2005.  Meanwhile, the 
percentage share for financial services increased from 7.6% prior to 
1995 to 22% in 1996-2000 and 25.6% in 2001-2005.  Sixty percent of 
the approved inbound direct investment in Taiwan's electronics 
industries came from the United States, Europe and Japan. 
 
¶52.  The United States and Japan used to be the two main sources of 
Taiwan's foreign investment, but have been replaced by the tax 
havens in the British Territories in America (BTA), which harbor a 
growing number of multinational corporations (many with roots in 
Taiwan).  Approvals for U.S. investment from 1952 to 2005 totaled 
US$14 billion, or 22% of total foreign investment.  Of total U.S. 
investment, 33% was directed toward the electronics and electrical 
industries, and 42% toward the service sector.  Approvals for 
Japanese investment amounted to US$13 billion, or 20% of total 
foreign investment, of which 28% was in electronics and electrical 
industries and 34% in the service sector.  In 2006, new EU 
investment exceeded that of the United States or Japan due to a 
major holdings transfer by the Philips Company. 
 
¶53.  Approvals for investment from the BTA surged steadily from 
US$76 million in 1994 to US$1.2 billion in 1999 when the BTA 
surpassed the United States and Japan to become the largest source 
of foreign investment in Taiwan.  Investment from the BTA during 
1999-2005 accounted for 27% of total approved investments, compared 
to 18% from the United States, another 18% from Europe, and 15% from 
Japan.  One-quarter of the investment from the BTA was directed 
towards financial services and another quarter to the electronic and 
electrical industries. 
 
¶54.  As a relatively open and liberal economy, Taiwan receives 
foreign investment while its businesses invest overseas, especially 
in China, Southeast Asia and the Americas.  According to 
balance-of-payments statistics compiled by the CBC, outbound direct 
investment has exceeded inbound direct investment every year since 
¶1988.  According to IC statistics, by 2005, cumulative approvals for 
outbound investments totaled US$92 billion.  One of the main 
recipients of Taiwan investment has been China, which has received 
over half of Taiwan's outbound investment.  Approved investments in 
China increased by 19% in 2003, and 51% in 2004, but declined 13% in 
¶2005.  In recent years, over 70% of Taiwan's new overseas investment 
has gone to China. 
 
 
TAIPEI 00000073  004 OF 009 
 
 
¶55.  Taiwan business firms started to relocate their production 
bases to China in the late 1980s.  Production lines in China 
gradually shifted from cheap labor-oriented industries in the late 
1980s to products requiring lower-end technologies, such as PCs and 
motherboards, in the early 2000s.  The WTO accession of China and 
Taiwan in 2002 prompted Taiwanese business firms to accelerate 
relocation to China to sharpen their competitive edge in exports. 
Taiwan factories based in China use the lower labor and land costs 
to process Taiwan-made production inputs into finished goods for 
exports to such industrial markets as the United States, Japan and 
Europe and also for final sale in China. 
 
¶56.  Taiwan's annual registered direct investment across the Taiwan 
Strait grew from US$1.25 billion in 1999 to US$6.94 billion in 2004 
and US$6.0 billion in 2005.  As a result of this trend China-based 
Taiwan factories produced over 40% of export orders received by 
Taiwan companies' headquarters by December 2005, up from 11.5% in 
early 2000, and the 2005 ratio exceeded 70% for electronic firms. 
Greater China (China plus Hong Kong) replaced the United States as 
Taiwan's largest export market in 2001, and Greater China's share of 
Taiwan's exports in the first 11 months of 2006 reached 40%, much 
higher than the 15% for the United States and 11% for the European 
Union. 
 
Table 1 
Foreign Investment Approvals by Year and by Area 
(1952-2005) (unit: US$ million) 
 
                       Central        Hong 
Year    U.S.A.  Japan  America  Europe Kong  Other  Total 
------- ------- -----  ------- ------ ----- ------ ------ 
52-89    3,067  2,983     341   1,312 1,198  2,049 10,950 
1990       581    839      66     283   236    297  2,302 
1991       612    535      60     165   129    277  1,778 
1992       220    421      37     165   213    405  1,461 
1993       235    278      38     214   169    279  1,213 
1994       327    396      76     245   251    336  1,631 
1995     1,304    573     151     338   147    412  2,925 
1996       489    546     417     198   267    544  2,461 
1997       491    854     659     401   237  1,625  4,267 
1998       952    540     711     367   274    895  3,739 
1999     1,145    514   1,216     462   161    733  4,231 
2000     1,329    733   2,300   1,000   271  1,775  7,608 
2001       940    685   1,397   1,182   145    780  5,129 
2002       600    609     803     609    66    585  3,272 
2003       687    726     919     635    44    565  3,575 
2004       362    824     896     964   195    712  3,953 
2005       804    459   1,094     947   104    820  4,228 
52-04   14,146 12,514  11,181   9,687 4,106 13,089 64,723 
--------------------------------------------- -------- 
Source: Investment Commission 
 
Table 2 
Foreign Investment Approvals by Industry and Area 
(1952-2005) (unit: US$ million) 
 
                            Centr.      Hong 
Industry      U.S.A.  Japan Ameri. Eur. Kong  Other   Total 
------------- ------- ----- ----- ----- ----- ------  ----- 
Total        14,146 12,514 11,181 9,687 4,106 13,089 64,723 
Trade         1,320  1,326  1,231 1,216   390  1,226  6,709 
Electronics   1,597  1,380  1,053 1,478    51    803  6,362 
Electrical 
  Machinery   2,159  1,704    305   461   382    348  5,359 
Banking         915    208  1,191   796   360  1,524  4,994 
Professional 
  S&T Services  635  1,244  1,051   540   382  1,098  4,950 
 
TAIPEI 00000073  005 OF 009 
 
 
Chemicals     1,529    921    314 1,108   287    402  4,561 
Transportation 
  & Comm.       845    135    649   161   259  1,802  3,851 
Inform & Tech   875    407  1,244   114   231    838  3,709 
Food & 
Financing 
  Investment    168    109  1,597   129    27    986  3,016 
Insurance     1,116    266      3 1,137   232    140  2,894 
Metal Prod.     388    779    203   128   118    897  2,513 
Machinery       393    918    271   218   129    362  2,291 
Others        2,206  3,117  2,069 2,201 1,258  2,663 13,514 
--------------------------------------------- -------- 
Source: Investment Commission 
 
Table 3 
Outbound Investment Approvals by Year and by Area 
(1952-2005) (unit: US$ million) 
 
                    Central 
Year         China  America  U.S.A.  ASEAN  Others   Total 
----------  ------- -------  ------  -----  ------ -------- 
1952-89       n.a.      76      865    429    155    1,525 
1990          n.a.     170      429    567    386    1,552 
1991           174     268      298    720    370    1,830 
1992           247     239      193    309    146    1,134 
1993         1,140     194      529    434    504    2,801 
            (2,028)                                 (2,028) 
1994           962     569      144    398    506    2,579 
1995         1,093     370      248    326    413    2,450 
1996         1,229     809      271    587    498    3,394 
1997         1,615   1,051      547    641    655    4,509 
            (2,720)                                 (2,720) 
1998         1,519   1,838      599    478    381    4,815 
              (515)                                   (515) 
1999         1,253   1,359      445    522    943    4,522 
2000         2,607   2,248      862    389  1,578    7,684 
2001         2,784   1,693    1,093    523  1,083    7,176 
2002         3,859   1,575      578    211  1,006    7,229 
            (2,864)                                 (2,864) 
2003         4,595   1,997      467    298  1,206    8,563 
            (3,104)                                 (3,104) 
2004         6,941   1,155      557    966    704   10,323 
2005         6,007   1,262      315    264    606    8,454 
1952-05     47,256  16,874    8,439  8,063 11,140   91,772 
--------------------------------------------- -------- 
Source: Investment Commission 
Note: Figures in parentheses refer to investments made prior to the 
specified year but not previously registered. 
 
Table 4 
Outbound Investment Approvals by Industry and by Area 
(1952-2005) (unit: US$ million) 
 
                        Centr. 
Industry         China  Amer.  U.S.A. ASEAN Others   Total 
--------------  ------- ------ ------ ----- ------ -------- 
Total            47,256 16,874  8,439 8,063 11,139  91,772 
Banking & Finance    29  9,229    713   635  3,097  13,703 
Electronics       6,356    200  1,244 1,762  1,204  10,766 
Inform & Tech     5,828    161    937   486    473   7,885 
Trade             1,363  1,226    972   274  1,121   4,956 
Electrical 
 Machinery        4,315    119    121   221    124   4,900 
Chemicals         3,147    140    818   278    284   4,667 
Textiles          2,194     25    488 1,478    377   4,562 
Metal Products    3,852     77     76   212    222   4,439 
Plastics          2,550    598    411    68    438   4,065 
 
TAIPEI 00000073  006 OF 009 
 
 
Financing Invest.    30  3,064    106    39    546   3,785 
Non-metallic 
 Mineral Products 2,324     97    202   213    241   3,077 
S&T Services        746    801    853    74    274   2,748 
Machinery         2,433     26     50    75     21   2,605 
Transport Equip.  1,762     53    168   156    352   2,491 
Food Processing   1,987      3     51   313    120   2,474 
Precision Instr.  1,346     20     97    57     47   1,567 
Others            6,994  1,035  1,132 1,722  2,199  13,082 
--------------------------------------------- -------- 
Source: Investment Commission 
 
Table 5 
Technical Cooperation Projects by Year and by Area 
(1952-1995) (unit: number of projects) 
 
Year    Japan   U.S.A.   Europe   Others   Total 
------  -----   ------   ------   ------  ------- 
52-89   1,996     728      412     103    3,221 
1990      106      54       30      10      200 
1991       80      65       33       8      186 
1992      193      50       19      10      175 
1993       85      50       34      12      181 
1994       70      39       24       6      139 
1995       50      29       10       5       94 
52-95   2,483   1,015      562     136    4,196 
--------------------------------------------- ---- 
Source: Investment Commission 
Note: Taiwan ceased to compile statistics on technical cooperation 
with foreign companies in 1996. Businesses have not been required to 
report technical cooperation projects to the IC since the Statute 
for Technical Cooperation was abolished. 
 
Table 6 
Technical Cooperation Projects by Industry and by Area 
(1952-1995) (unit: number of projects) 
 
Year                   Japan  U.S.A.  Europe Others  Total 
------                 -----  ------  ------ ------ ------- 
Total                  2,483  1,015     562    136   4,196 
Electronics & 
  Electrical             708    416     106     16   1,246 
Chemicals                416    203     160     28     807 
Machinery                368     68      97      9     542 
Basic Metal & 
  Products               329     55      53      6     443 
Other Services           111    106      27     42     286 
Rubber Products          131     32      21      4     188 
Non-metallic Minerals     97     22      24      2     145 
Food and Beverage         80     38      13      9     140 
Textiles                  47     21       8      2      78 
Construction              38      5      10      4      57 
Garment & Footwear        18     14       4      3      39 
Paper Products & 
  Printing                19     13       4      0      36 
Transport Equipment       20      2       8      1      31 
Others                   101     20      27     10     149 
--------------------------------------------- -------- 
Source: Investment Commission 
 
Table 7 Major U.S. Investors in Taiwan 
--------------------------------------------- ------- 
U.S. Investor/ 
Local Investment                    Major Products 
----------------------------------  --------------- 
Amkor Technology Ltd./ 
Amkor Technology Taiwan (Lungtan)   IC packing 
 
TAIPEI 00000073  007 OF 009 
 
 
  Ltd. 
Amkor Technology Taiwan (Linkou) 
  Ltd. 
 
AIG/ 
Yageo Corp.                         electronic components 
Far East Air Transport Corp.        airlines 
Nan Shan Life Insurance Co.         insurance 
 
Pruco Insurance Group/ 
Masterlink Securities Co.           securities 
 
Corning Inc./                       substrate glass for 
Corning Glass Taiwan Co., Ltd.      TFT/LCD 
 
GTE-Verizon 
Taiwan Fixed Network Telecom        fixed-line and mobile 
Taiwan Cellular Corp.               phone service 
 
Carlyle Group/ 
Eastern Technology                  cable TV 
 
Ensite Limited (Ford Motor)/ 
Ford Lio Ho Motor Co.               autos 
 
Texas Instruments Inc. 
Texas Instruments Taiwan Ltd.    semiconductor 
 
AMOCO Chemical Corp./ 
China American Petrochemical Co.    petrochemicals 
 
E.I. Dupont De Nemours/             industrial, electronic, 
Dupont Taiwan Ltd.                  agricultural goods 
 
IBM Corp./                          computers: 
IBM Taiwan Ltd.                     sales and service 
 
AETNA Life Insurance Co./ 
Taiwan Branch                       insurance 
 
View Sonic Co./                     mobile phone service 
Taiwan PCS Network Inc. 
 
Warner Village Cinema Co./ 
Warner Village Cinema (Taiwan) Co.  movie theaters 
 
United Parcel Service International 
  Inc. (UPS)/                       world wide express 
UPS, Taiwan Branch                  services 
 
Intel Inc./InteX. Co.               ADSL chipset 
 
Applied Materials Ltd./             semiconductor mfg. 
Applied Materials Taiwan Ltd.       equipment 
 
General Motors Co./                  auto assembly & 
Yulon GM Motor Co.                  sales 
 
GE Consumer Finance/                banking 
Cosmos Bank 
 
Jabil Circuit Inc./                 telecom components 
Taiwan Green Point Enterprise Co. 
--------------------------------------------- -------- 
 
Table 8  Major Japanese Investments in Taiwan 
--------------------------------------------- -------- 
 
TAIPEI 00000073  008 OF 009 
 
 
Japanese Investors/Investment           Major Products 
-------------------------------------   ---------------- 
Toppan Printing Co./ 
Toppan Electronics (Taiwan) Co.          color filter 
Toppan CFI (Taiwan ) Co.                 sales and    production 
 
Nippon Sheet Glass Co./ 
Taiwan Auto Glass Industry Co.           auto glass 
Nippon Sheet Glass (Taiwan) Ltd.         substrate glass 
 
 
 
Asahi Glass Co. (AGC)/ 
Asahi Glass (Taiwan) Co.                 substrate glass 
 
NTT DoCoMo/ 
KG Telecommunication Co                  phone service 
 
Taiwan Shinkansen Corp./ 
Taiwan High Speed Rail Corp.             high speed rail 
 
Nissan Motor/Yulon Motor                 autos 
 
Toyota Motor/Kuozui Motor                autos 
 
Matsushita Electronic Co./               electrical 
Matsushita Electronic (Taiwan) Co., Ltd. appliances 
 
Hitachi Co./                             electrical 
Taiwan Hitachi Co., Ltd.                 appliances and 
Kaohsiung Hitachi electronics Co., Ltd.  components 
 
Yamaha Motor Co., Ltd./ 
Yamaha Motor Taiwan Co., Ltd.            motorcycles 
 
Sankyo Co./Sankyo Co. Taipei             pharmaceuticals 
 
Idemitsu Co./Shinkong Idemitsu Corp.     petrochemicals 
 
Mitsui Co./Mitsui (Taiwan)               trading 
 
Takashimaya Co./Ta-ya Takashimaya        department store 
Dept. store 
 
Sumitomo Co./Sumitomo (Taiwan)           trading 
 
Toshiba Co./Toshiba Compressor (Taiwan)  compressor 
 
Sadagawa Steel Co./Sheng Yu Steel Co.    steel 
 
Shin-Etsu Handotai Co./Shi-Etsu Handotai 
Taiwan Co.                               semiconductor 
 
Komatsu Co./ 
Formosa Komatsu Silicon Co.              silicon wafer 
 
Mitsui Mining & Smelting Co./ 
Taiwan Copper Foil Co.                   copper foil 
 
Kirin Brewery Co./ 
Taiwan Kirin Co.                         beer sales 
 
Nomura Securities/                       banking 
Taishin Financial Holdings 
 
Shinsei Bank/                            banking 
Jih Sun Financial Holdings 
 
TAIPEI 00000073  009 OF 009 
 
 
--------------------------------------------- -------- 
 
Table 9  Major European Investments in Taiwan 
--------------------------------------------- -------- 
European Investors/Investment               Major Products 
-----------------------------------------   -------------- 
Saberasu Investments Co./                   assets 
Cerberus Asset Management Co.               management 
 
Goldman Sachs/                              securities 
Goldman Sachs, Taipei Branch                underwriting 
 
 
Deutsche Telecom/                           fixed-line 
Eastern Broadband Telecom                   service 
 
Volkswagen Ag/Ching Chung Motor Co.         autos 
 
Dresdner Bank Ag/Grand Cathay Securities    securities 
 
Imperial Chemical Inc./ICI Taiwan Ltd.      chemicals 
 
N.V. Philips/Philips Electronics (Taiwan)  electronics 
 
Alcatel Co./Alcatel Taisel Co.              switch boards 
 
Internallianz Bank, Zurich/Kwang Hwa        securities 
Securities 
 
Horwood Investment/Chi Mei Industry Co.     petrochemicals 
 
H.S. Development & Finance/ChinaTrust       banking 
Commercial Bank 
 
Infineon Technologies Inc./ 
Inotera Co.                                 DRAM 
Siemens Telecommunications Systems Ltd.     switch systems & 
                                            phone equipment 
Isenbourg-sgp, Lda/ 
RT-Mart International Ltd.                  shopping malls 
 
Standard Chartered Bank/                    banking 
Hsinchu International Bank 
--------------------------------------------- -------- 
YOUNG