Chunghwa makes tubes for TVs and computers

It manufactured picture tubes for televisions and computers.

A spokesman for Scottish Enterprise, which paid out the grant, said the jobs had been "planned but not promised".

He acknowledged that Chunghwa had suffered from the global downturn in the electronics industry.

It is not known how much the company was given to settle in Scotland but it was thought to run into tens of millions of pounds.

Inward Investment grants are often paid in stages, with each stage being triggered if a company takes on more staff.

Technology cash

It is understood that Chungwha had not received the full amount.

But news of the job cuts has prompted discussions with the Scottish Executive.

It said it was looking at the impact of the losses on the contract it had with the company.

In May this year it became apparent that the Taiwanese economy was slowing down as a result of a slump in the US markets and the technology crash.

An estimated 32% of its exports are IT related and semiconductors, which is notoriously cyclical, was one of the great boom industries in Taiwan.

In May 2000 the manufacture of semiconductors was booming because of an increased interest in the internet.

But now orders globally are falling.