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Taiwan to Investigate Suppliers Assisting Huawei in Building Chip Plants

Updated: Jan 8

Taiwan's Minister of Economic Affairs has announced that the country will launch an investigation into Taiwanese companies that are aiding Huawei in constructing chip plants in China.

Credits: Shutterstock

The probe aims to determine whether these firms have violated the approved scope of their activities. This move comes as tensions between Washington and Beijing over technology continue to escalate, with Huawei at the center of the dispute.

The investigation was prompted by a Bloomberg News report that revealed several Taiwanese tech companies are involved in building infrastructure for Huawei's chip plants in southern China. The companies identified include a unit of Topco Scientific, Cica-Huntek Chemical Technology Taiwan, a subsidiary of L&K Engineering and a subsidiary of United Integrated Services. These firms are reportedly assisting with waste water and environmental projects, which are not restricted by the Taiwanese government for China.

The collaboration between Taiwanese companies and Huawei has raised concerns due to the strained relationship between Taiwan and the Chinese Communist Party. The issue is particularly sensitive as Taiwan prepares for its presidential election in January. The Taiwanese government will examine whether the companies are operating within the approved scope of their original applications.

The investigation reflects the growing scrutiny of Huawei's activities and the potential violation of US sanctions. The US Commerce Secretary, Gina Raimondo, expressed concern over reports of Huawei's chip breakthrough and emphasized the need for stronger enforcement of export-control regulations. The development of advanced chips by Huawei has raised alarm in Washington and led to calls for a complete ban on the company and its chip maker, Semiconductor Manufacturing International Corp.

  • Taiwan will investigate Taiwanese companies assisting Huawei in building chip plants in China.

  • The probe aims to determine if these companies have violated the approved scope of their activities.

  • Several Taiwanese tech firms are involved in building infrastructure for Huawei's chip plants in southern China.

Source: SCMP

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