Taiwan Investigates Companies for Alleged Association with Huawei in Developing Advanced Chips
The Taiwanese government has launched an investigation into four companies that have been allegedly engaging with Huawei in developing advanced chips. The companies in question are Topco Scientific, L&K Engineering, United Integrated Services, and Cica-Huntek Chemical Technology Taiwan.
The investigation is reportedly focused on whether these companies are violating the terms of their initial investment approvals granted by the Taiwanese government, as well as the conditions signed at the time of approval. The probe comes in the wake of alleged violations or discrepancies in business activities with Huawei.
Taiwan is a leading chip maker and home to the world”s largest semiconductor compnay, Taiwan Semiconductor Manufacturing Company (TSMC). TSMC produces chips for some of the world”s largest tech companies, including Apple, Qualcomm, and Nvidia. In 2023, Taiwan accounted for over 50% of the global market share for semiconductor manufacturing, making it the most important country in the world for the semiconductor industry.
Taiwan”s Economy Minister, Wang Mei-hua, said that the highest permitted fine for violating the investment approval terms is up to T$25 million ($775,300). Wang did not disclose the specific violations allegedly committed by the companies, but Bloomberg reported that they were engaging with Huawei-connected firms to build infrastructure for chip plants, even though they were entrusted to perform water sewage activities.
All of the companies involved have denied any wrongdoing, while Huawei has not responded to requests for comment. Taiwan”s move to investigate these companies comes ahead of the introduction of new rules on “key technologies based on international practices.”
Huawei is a Chinese telecommunications giant that has been banned by the US government from obtaining components and technology from US firms due to suspected spying activities. However, many Taiwanese tech companies have a presence in China and are in connection with Huawei. In this context, the Taiwanese government has banned the production of critical technology in the country and scrutinizes the activities of companies that operate in China.
Taiwan is a country with geopolitical significance, as China claims Taiwan as part of its territory and has a significant military presence around the island. To counter Chinese dominance in the area, the US has extended its support to Taiwan, emphasizing that it is ready to help Taiwan protect its sovereignty. This stand has led to diplomatic tensions with China.
Taiwan”s investigation into four companies for their alleged association with Huawei in developing advanced chips is a significant development in the global semiconductor industry. It comes at a time when Taiwan is facing increasing pressure from China, both economically and militarily. The outcome of the investigation could have a major impact on Taiwan”s semiconductor industry, as well as its relationship with China and the US.
