Four companies, including NXP-ASE venture, will be allowed to invest in low-end chip assembly operations in China Four Taiwanese chip assembly companies have won preliminary government approval for investments in China, including a joint venture with Europe’s NXP Semiconductors.The companies must still await final approval by the Taiwan Investment Commission before moving forward, an economics ministry official said Tuesday. Government agencies involved in China-bound investment decisions have already voiced agreement to allow the four companies to invest in low-end chip assembly operations in China. Final approval is expected within the next few months.Taiwan carefully regulates technology investments to China over fears the Chinese military could use the technology against the island, in addition to nervousness about job losses and losing its competitive edge. Taiwan and China remain enemies after splitting in 1949 amid civil war. Taiwan has developed a vibrant economy and a democratic government in the time since the separation, while China’s economic development started more recently. Despite their strained relationship, China remains the favored destination for Taiwanese investment due to their shared language and culture, as well as China’s lower costs and incentives for building factories. Among the four investments, Taiwanese officials have given a nod to a deal between NXP Semiconductors, the former chip division of Koninklijke Philips Electronics, and Advanced Semiconductor Engineering (ASE), the world’s largest independent chip packaging and testing company.Earlier this year, the two companies signed a memorandum of understanding to form a joint venture in Suzhou, China. ASE will take a 60 percent stake in the venture, while NXP will hold the remaining 40 percent.The other three Taiwanese companies winning preliminary approval are Siliconware Precision Industries Co Ltd., Greatek Electronics Inc., and Walton Advanced Engineering Inc. As part of their China applications, the four companies all included plans to continue investing in Taiwan, the official said. In all, they promised to invest NT$75 billion (US$2.29 billion) in Taiwan over the next three years, including NT$40 billion from ASE, NT$20 billion from Siliconware, NT$10 billion from Greatek and NT$5 billion from Walton.ASE and Siliconware executives could not immediately be reached for comment, while Greatek and Walton both declined to immediately comment. Technology Industry