Taipei, May 9, 2008 (CENS)--Some mainland Chinese press media recently reported that mainland authorities have invited chip assembler Advanced Semiconductor Engineering Inc. (ASE) to build a 300mm wafer fab in Chongqing of the mainland`s hinterland province of Sichuan.

Reports said the mainland authorities have decided to spend a total of US$20 billion to build three 300mm wafer fabs at an industrial park in the city as part of the mainland`s effort to develop chip-making industry in western part of the mainland. The park was developed in August 2005, covering an area of 30 square kilometers.

According to Chongqing government`s plan, the industrial park is set to yield revenue of RMB50 billion (US$7 billion at US$1:RMB7) in 2010 with investments worth of US$5 billion.

News medias reported that the mainland authorities had recently met with executives of ASE and ProMos Technologies to tell them about the ambitious investment plan and invited the two Taiwanese semiconductor companies to take part in the plan.

Reports said ASE had committed to invest US$1 billion to build a 300mm wafer fab at the park in a meeting with Chongqing authority. However, ASE has denied the reports.

ProMos is reported to likely co-invest in a 300mm fab at the park with Elpida Memory of Japan to circumvent Taiwan`s legal prohibition. However, ProMos has declined to confirm the reports.

More recently, the mainland`s news medias said after another meeting with the Chongqing authorities ASE had agreed to move a running factory in Shenzhen in the coastal province of Guangdong to the Chongqing industrial park and wait for a good timing to increase investments there.

Separately, ProMos recently completed pilot run at its 200mm wafer fab in Chongqing with production of power-management chips and chips for optical mousse and would start volume production in July this year. This facility is the first 200mm wafer fab in Sichuan.

(by Ken Liu)