Joint venture in China is another sign of easing restrictions by Taiwan government One of Europe’s largest chip makers is teaming up with Taiwan’s biggest chip packaging and testing company on a joint venture in China, despite strict regulations regarding chip-related investments on the part of Taiwan.NXP Semiconductors, the former chip division of Koninklijke Philips Electronics, and Advanced Semiconductor Engineering (ASE) on Friday said they signed a memorandum of understanding to form a joint chip packaging and testing venture in Suzhou, China. ASE will take a 60 percent stake in the venture, while NXP will hold the remaining 40 percent.The companies said the deal will only go through if it meets regulatory approval, but they indicated that the Chinese and Taiwanese governments have been cooperative. “We’re pleased to be able to strengthen our relationship with ASE through the formation of this JV and appreciate the willingness of governments to help in this regard,” said Ajit Manocha, chief manufacturing officer at NXP, in a statement.Taiwan and China remain enemies after splitting in 1949 amid civil war. The island heavily regulates China-bound chip investment over fears China could use the technology to bolster its military. Chip makers on the island find the rules a hindrance. But despite the 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. Technology Industry