Shanghai Belling has formed a US$340m chip-making venture with Shanghai Zhangjiang Hi-Tech Park Development Co, reported Bloomberg. Belling will invest US$114m in the venture, with the remainder to come from Zhangjiang. The facility will have an initial capacity to produce 120,000 eight-inch wafers a year. Taiwan is to end its ban on local firms establishing microchip manufacturing facilities on the mainland, Reuters reported. However, permission will be subject to an upper investment limit, firms will only be allowed to use eight-inch wafer technology and there will be other restrictions on technology transfer. Companies will also have to keep core research and development in Taiwan.