President Ma Ying-jeou on the morning of July 10 at the Presidential Office met with Applied Materials, Inc. President and Chief Executive Officer Mr. Mike Splinter. The president extended a warm welcome to Mr. Splinter and thanked him for making the lengthy journey to Taiwan.
President Ma said that Applied Materials has for 17 consecutive years been the United States' largest semiconductor materials supplier. The company, which made its first investment in Taiwan in 1989, has continually expanded its capacity here. In addition, the president noted that Applied Materials plans to expand its output value here next year to NT$7 billion. President Ma said he welcomes this as well as the company's plans to engage in the research and development of key technologies on Taiwan.
President Ma said Taiwan is the world's leader in the semiconductor foundry industry, and it ranks among the top in the IC design and testing & packaging industries. He noted the importance of companies providing components and technology to the semiconductor industry. Without the support of those sectors, he said, Taiwan's semiconductor industry would not be where it is today.
The president furthermore said that the new government here is placing heavy emphasis on economic development. It wants to develop Taiwan into a global center for innovation, an Asia-Pacific economic and trade hub, and a center for the headquarters of Taiwan businesses. Of these objectives, the global center for innovation is the most important, he said. Applied Materials has a presence in over 100 spots throughout the world, and Taiwan is one of these. President Ma said he hopes that Mr. Splinter will take advantage of this trip to Taiwan to enhance his understanding of Taiwan's development in a wide range of areas. The president also expressed his desire to see Applied Materials strengthen its investment in Taiwan and assist Taiwan to continue to hold a leading position in the semiconductor industry.
President Ma said that last year, American semiconductor giant Intel announced that it would construct a 12-inch wafer fabrication facility employing 90 nanometer technology in Dalian of Mainland China. The announcement sent a shockwave through the industry, he said. The plant is expected to begin output next year, and it will have a significant impact not only on the market in Mainland China, but also on the global market. The president said up to now Taiwan has only given the nod for Taiwan firms to build 8-inch wafer factories in Mainland China, and therefore this means that Taiwan is falling behind in this regard. As a result, the new government's attitude in principle is to relax0 and liberalize regulations. He said the government's stance is that as long as such investment conforms to terms of the 1996 Wassenaar Arrangement, it will not adopt any other restrictions. He said that given that the United States was a founding signatory of the Arrangement and that it has permitted Intel to establish the factory in Mainland China, he believes Taiwan should also adopt a more liberalized stance. President Ma said this would be a reasonable and necessary policy, adding that it would also provide even more opportunities for Applied Materials.
Mr. Splinter said that Applied Materials, Inc. has invested in Taiwan for over 20 years and it maintains a strong relationship with industry heavyweights such as Taiwan Semiconductor Manufacturing Company and Chi Mei Corp. He said that his firm intends to expand its investment in Taiwan and that in southern Taiwan it will establish a monitor and solar energy equipment manufacturing center. Mr. Splinter said he feels he is extremely satisfied with the business results of his company in Taiwan and believes Taiwan is a place full of commercial opportunities.