The Taiwan Government would begin an investigation on four companies. These companies are alleged to have conducted business with firms linked to Huawei ,US sanctioned in China, according to a media report. According to the report, the firms have provided and assisted China’s Huawei technologies to build semiconductor facilities and chip plants.
Topco Scientific, L&K Engineering , United Integrated Services and Cica-Huntek Chemical Technology Taiwan are the companies and all have denied any wrongdoing.
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The Chinese telecommunication company has been restricted to procure components from the US without approval. Huawei unveiled a smartphone in late August with an advanced made-in-China chip ,analysts believed that it was a technology breakthrough by the SMIC, Semiconductor Manufacturing International Corps based in Shanghai.The company had been on a trade blacklist in 2019, following security concerns by the US, which was formerly the second largest smartphone manufacturer in the world.
Issues regarding the firms in Taiwan
The ministry would be looking into whether the firms’ activities in China “matched up” with their initial investment approval from the island’s government, said Taiwan Economy Minister Wang Mei-hua
As per a Bloomberg news report this week ,the firms had been working with Huawei-connected firms to build infrastructure for chip plants.
Details regarding the violations committed by the firms are not disclosed yet.
The assistance of the four firms is related to waste water and environmental projects. These are not the core technologies restricted by Taiwan for China, said Wang to the lawmakers. According to Emile Chang, an official of the Ministry of Economic affairs and in charge of reviewing investments, an “administrative probe” has been initiated in four companies,this week. The investigation would be to enquire whether their business activities with China are consistent with the approvals given by the Ministry.
In case the allegations are found correct ,they would be fined a maximum of 25 million New Taiwan dollars ( $777,000).
Taking into account international practice, she added, without giving details,Taiwan will unveil tighter rules on sensitive technologies
The presence of Taiwan in Huawei’s effort could trigger a backlash, given a rocky relationship between the island and Chinese Communist Party. This issue is of significance, in the backdrop of Presidential Elections in Taiwan.China claims Taiwan as its own territory and in recent years tried to expand its control over the region.
Huawei technology has become a point of rivalry between the US and China. For they believe that the telecom company would be used for espionage. The allegations have been denied by the tech giant.
Taiwan and mainland China have been closely engaged in technology ventures including the supply chain of chip giant TSMC and Apple supplier Foxconn. Though the island nation allows business operations of China, they also seek to ensure better security measures in place. Taiwan doesn’t allow production of sensitive technology in China ,and keeps a close watch on its company’s investment there.