Shyue-Ching Lu, chairman of Chunghwa Telecom, has revealed that the company plans to set up a subsidiary on the Chinese mainland in the second half of 2010, with expected capital of TWD1 billion.

The company is reportedly undecided on the company name of the new subsidiary, but it will probably be Chunghwa Telecom China Ltd.

Due to Taiwan Mainland Affairs Council's ban on the investments in certain mainland telecom projects by Taiwanese telecom companies, Chunghwa Telecom may avoid projects that are prohibited, including direct investments in mobile phones and local phone services.

According to the reports in local media, after its establishment, Chunghwa Telecom's mainland subsidiary will focus on businesses such as information and communication technologies, system integration, or iEN intelligent energy management system.