Vice-minister of economic affairs Huang Jung-chiou explained that it will still not allow any factories using technology more advanced than 'sixth generation', which would allow facilities to produce glass sheets up to 59 inches by 73 inches, reports the Associated Press.
The news provider pointed out that trade ties between the two companies are not hugely developed as Taiwan is worried about sharing its most up-to-date techniques with its larger neighbour.
Mr Huang revealed that a maximum of three sixth-generation factories will be permitted on the Chinese mainland and any technology older than this is also allowed.
Semiconductor companies in Taiwan will also be able to invest in equivalent Chinese firms, but production techniques must be at least two generations behind what is used on the island.
A spokesperson from Taiwan Semiconductor Manufacturing Company told eTaiwan News that the new regulations do not offer firms in the country enough room to take more market share in China.
