Taiwanese companies suspected of helping Huawei build factories in China

2023-10-06 11:53:00

Is Huawei benefiting from the help of Taiwanese firms to equip itself with state-of-the-art chip manufacturing factories? This is what was indicated Bloomberg last October 3. “Several Taiwanese tech companies are helping Huawei build infrastructure for a discreet network of chipmaking factories in southern China”writes the agency. “An unusual collaboration, which risks inflaming the feelings of a democratic island struggling with the growing belligerence of Beijing”, continues the agency. The companies singled out are Topco Scientific, United Integrated Services, L&K Engineering Co and Cica-Huntek Chemical Technology.

In the wake of these revelations, the Taiwanese government opened an investigation into whether these companies violated American sanctions against Huawei. The Chinese telecoms giant, accused of espionage by Uncle Sam’s country, has no longer had the right, since 2019, to obtain American technologies, particularly in the field of semiconductors. The investigation must, clearly, determine whether Taiwanese companies provided prohibited technologies to Huawei.

Companies deny any wrongdoing

According to the Taiwanese government, they each face a fine equivalent to $775,000. All of them currently deny any wrongdoing. They claim that they only worked on wastewater management, interior decoration or construction work, without providing equipment related to chip manufacturing.

Today Taiwan has several major semiconductor players, such as the giants TSMC and Foxconn, which supply chips to Apple. They work in China, but the Taiwanese government has banned them from producing the most sensitive technologies there.

A United States investigation

The case will be closely monitored. At the end of August, Huawei marketed a new 5G compatible smartphone, the Mate 60, equipped with a chip with an engraving fineness of 7 nanometers. This announcement provoked outcries in the United States, where many wondered how the Chinese group was able to acquire such technology so quickly, on its own, and despite sanctions. Uncle Sam’s country itself has initiated an investigation to find out whether Huawei has not, in one way or another, violated its embargo.

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