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Distinct Post > World > Asia > Taiwan to investigate firms’ role in Huawei semiconductor factories amid US Sanctions
taiwan-to-investigate-firms-role-in-huawei-semiconductor-factories-amid-us-sanctions
AsiaTech

Taiwan to investigate firms’ role in Huawei semiconductor factories amid US Sanctions

Lisa Sean Published October 5, 2023
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Taiwan has said it will probe if Taiwanese companies that helped Huawei make semiconductor factories violated US sanctions against China’s tech giant.

Huawei, a leader in 5G telecom equipment, has been in the middle of the intensifying US-China feud over advanced tech in recent years.

The United States and its supporters have shrunk its access to main markets and advanced tech, including chip making, over worries its products could let China spy on their networks.

Wang Mei-hua, Taiwan’s Minister of Economic Affairs, agreed during questioning by lawmakers on Wednesday, to launch a investigation into four tech companies that collaborated with Huawei on chip plants.

The four Taiwanese firms are assisting Huawei in developing an “under-the-radar network of chip plants” in China, Bloomberg reported this week.

The firms were identified by Bloomberg as Topco Scientific Co., L&K Engineering Co., United Integrated Services Co., and Cica-Huntek Chemical Technology Taiwan.

Taiwan is a powerhouse for the production and design of semiconductors, the lifeblood of the current international economy.

Despite increasing Chinese diplomatic and military tension on the island, the Taiwanese tech industry has had to stride a careful line to evade angering China and any export control breaches.

Wang told lawmakers that the four firms had aided Huawei with “wastewater and environmental protection equipment” for its factories, and not with sensitive technologies that could affect national security.

Washington, since last year, has introduced comprehensive restrictions to cut off China’s access to high-end semiconductors and chip-making equipment, quoting national security concerns.

Beijing has responded with similar curbs, including the introduction of a license needed to export the rare minerals necessary for the production of semiconductors.

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