Competition sparks change, which previously saw Taiwan restrict manufacturing activities of its prized semiconductor sector on mainland to protect intellectual property and trade secrets Taiwan has relaxed curbs on its companies setting up semiconductor manufacturing plants in mainland China, in a bid to enable them to better compete for mainland clients. The island's economics ministry said it would allow a maximum of three wholly-owned 12-inch wafer foundries to be set up on the mainland by Taiwanese companies, easing previous rules that limited such investments to mostly older technology and to joint ventures.