Taiwan Investigates Firms Suspected of Supplying Chip Equipment to Huawei Despite US Sanctions 

Taiwan authorities are currently conducting an investigation into four Taiwan-based companies suspected of aiding China’s Huawei Technologies in the development of semiconductor facilities. Minister of Economic Affairs Wang Mei-hua announced the investigation on Friday, which seeks to determine if these companies have breached regulations that prohibit the sale of sensitive technologies and equipment to China. The Ministry of Economic Affairs took the step of summoning the suppliers of semiconductor materials and factory services for questioning after a Bloomberg report revealed their involvement in Huawei’s efforts to construct a network of computer chip plants. 

The investigation will also delve into whether these companies have exported sensitive technologies or products with military applications that are part of Taiwan’s Strategic High-Tech Commodities list, as reported by Taiwan’s China News Agency and other sources. The companies facing suspicion include semiconductor material reseller Topco Scientific Co., cleanroom constructor L&K Engineering Co., construction and design firm United Integrated Services Co., and chemical supply system provider Cica-Huntek Chemical Technology Taiwan Co. Violations could result in fines of up to 25 million Taiwan dollars ($777,665) for each company. Cleanrooms and other high-tech equipment and services are crucial for the intricate process of manufacturing computer chips. So far, the four companies have not provided immediate responses to requests for comments. 

Minister Wang disclosed that Taiwan’s National Science and Technology Council is planning to release a list of key technologies that necessitate control measures to prevent the sharing of semiconductor technology with China. She emphasized that the government will consider both national security and technical factors when determining the measures to be implemented. During a hearing in Taiwan’s Legislative Yuan earlier this week, Wang explained that the four companies primarily offered low-end factory services, such as wastewater treatment and environmental protection, and did not supply any critical services to Huawei, according to reports. 

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