Taipei - Taiwan on Thursday launched a four-year promotion project aimed at luring foreign tourists.

Under the Tourism Pilot Project approved by cabinet Wednesday, Taiwan will mobilize all resources to turn the island into a transfer point for South-East Asian tourists and a main international tourist destination.

The project requires 30 billion Taiwan dollars (1 billion US dollars) is expected to create 400,000, the Tourism Bureau Director Lai Se-chen said.

Taipei  - Taiwan's stocks surged 4.12 per cent Thursday to a six-month closing high with investors buying strongly in the traditional industry, tourism and technology sectors, dealers said.

The main TAIEX index opened higher and extended its gains to close at 5,667.8, up 224.24 points, or 4.12 per cent.

Dealers said reports of continued rush orders from China received by local technology firms and the government's multi-billion dollar plans to boost tourism and local infrastructure projects bolstered investor sentiment.

San Francisco - Taipei-based company Elan Microelectronics has sued Apple for the alleged infringement of two of its touch screen patents in the iconic US technology company's iPhone and other devices.

The suit was filed Tuesday in the US District Court in San Francisco, close to Apple's Silicon Valley headquarters, court papers posted Wednesday showed.

Elan, which makes touchpads, claims it owns the patents covering the touch screen technology that has helped the iPhone, MacBook and other Apple products become huge hits.

Taipei  - Taiwan's mobile phone sales were forecast to drop 9.3 per cent in 2009 because of weakened replacement demand and an extended replacement cycle, an industry report said Wednesday.

Sales were estimated at 6.39 million units by Taiwan's Market Intelligence and Consulting Institute, which called 2009 a crucial year for Taiwan mobile phone operators in terms of strengthening their share in the mobile internet market.

Taipei  - After fighting communism for half a century, Taiwan has allowed the formation of two communist parties on the island, a newspaper reported Wednesday.

According to the Taipei Times, two communist parties - the Taiwan Communist Party and the Republic of China Communist Party - registered with the Interior Ministry and won approval for their existence Monday, thus becoming legal civic organizations.