Taiwan's Dilemma Across the Strait: Lifting the Ban on Semiconductor Investment in China

For more than two decades, Taiwanese semiconductor manufacturers have been banned from investing in China. There was a heated debate in 2001–02 for several months over whether to lift the ban. The purpose of this study is to report the dilemma that the Taiwanese government faced during the debate, and the decision-making process of allowing Taiwanese integrated circuit foundries to invest in China.