TAIPEI, TAIWAN: Taiwan is mulling easing controls on the technologies its flat-panel makers can use in their China operations, as South Korean and Japanese rivals have stepped up investments there, the Commercial Times reported on Tuesday.

LCD panel makers, including AU Optronics and Chi Mei Optoelectronics, will be able to use any technologies in mainland production as long as they use more advanced technologies in Taiwan, the Chinese-language paper said, citing unnamed government officials.

"We think the evaluation standard should be that technology and production they have in Taiwan exceeds that in China," it quoted economics minister Shih Yen-shiang as saying in response to questions from lawmakers.

LCD panel makers in Japan and South Korea have said they would invest in more advanced 7.5th- and 8.5th- generation technologies in China, posing a threat to Taiwan companies, the paper said.

Taiwan President Ma Ying-jeou told Reuters on Monday the island had not considered allowing the island's LCD firms to make large panels on the mainland for now, saying it would only cautiously export its technology expertise to China.

In late September, Shih said the ministry would allow chip makers and flat-panel firms to invest more in China, including using more advanced process technology for chips and allowing LCD firms to make large panels there, but gave no timetable.

Taiwanese firms such as AU, TSMC and UMC have urged the government to allow them to invest in China or use more advanced technologies to help cut costs and compete with global rivals.