TAIPEI. Dec II Taiwan's premier technology development park celebrated Its 20th anniversary Monday amid fears the engine of the island's semiconductor industry could be losing linns to China, reports AFP

President Chen Shui-bian. who vowed to build Taiwan into a "Green Silicon Island." hailed the achievements of Hsinchu Science Industrial Park. 70 kilometers (42 miles) south of the capital Taipei.

It has become one of the most successful industrial parks in the world. With the park, the country’ has emerged as a key high-tech product producer." Chen said in a speech al Hsinchu.

"Ils rich experience has emerged as a textbook for many countries, including mainland China, in formulating their own science and technology development policies."

Occupying a land of 600 hectares, the industrial park houses .390 companies, notably microchip makers, integrated circuit design houses, computer and computer peripheral < om-

With a combined total of 100.000 employees, the industrial park's output is forecast to surge io 900 billion Taiwan dollars (27.26 billion USI in 2000. up from 300 billion dollars in 1995.

But clouds have begun to appear on the horizon as China takes note of the park's success and offers tax holidays and other advantages to investors in technology on the mainland.

Taipei currently bans any China-bound investment worth more than 50 million US dollars and reviews technology’ and infrastructure investments on a case-by-case basis.

But the ban is widely flouted. According to official Chinese figures. Taiwanese companies have 45 billion dollars worth of investments on the mainland.

Drawn by China's huge market potential, particularly after its entry info the World Trade Organisation, many of Taiwan's leading electronics groups have set up production bases in the mainland.

The trend has deepened worries in Taiwan that the country's hard-won economic , base will shift to the mainland

•n masse, jeopardising the en-Ire island economy

Hie latest joint venture to be announced was a 1.63 billion US dollar semiconductor com-pany In Shanghai between Chinese President Jiang Zemin's son and Taiwanese investors including Winston Wang, son of ft Wang, chairman of leading conglomerate Formosa Pla sties Group

The Shanghai Grace Semi-onductor Manufacturing Cor-toration Ltd. broke ground in he Pudong district of the •oastal city last month. China's )fflcial Xinhua news agency’ >ald.

In November. 83-year-old A'ang urged the government to scrap restrictions on investments in mainland China.

Taipei authorities are con-serned that without the restric-ions. Taiwan may become over reliant on mainland China, •veil an "economic hostage."

The Two countries share relations at best strained and at worst openly hostile. China regards Taiwan as part of its rerritory and threatens war if it leclares-lormai-indepcndence