Taiwan’s Ministry of Economic Affairs has launched an investigation into four local companies amid reports of their involvement in helping Huawei Technologies establish chip factories in China. These companies are under scrutiny following a recent Bloomberg report. It remains unclear whether their collaboration with Huawei violates the U.S. trade sanctions imposed on the company.
The Economic Affairs Minister, Wang Mei-hua, assured lawmakers that no confirmed violations of U.S. sanctions have been found at this stage. Wang clarified that the companies primarily provide services related to wastewater and environmental protection processes, and are not directly involved in critical technologies. However, the Ministry will conduct a deeper investigation into the matter.
According to Bloomberg, these Taiwanese companies are aiding Huawei in setting up a network of chip factories in southern China. One such company, Topco Scientific, acknowledged its business dealings with a semiconductor manufacturer believed to be working with Huawei. Topco stated that its cooperation with the manufacturer has been solely related to environmental protection. There have been no transactions involving semiconductor materials or equipment.
Similarly, another Taiwanese company, United Integrated Services, confirmed that its Chinese subsidiary accepted a job to renovate the interior of a separate semiconductor manufacturer associated with Huawei. United Integrated Services emphasized its commitment to complying with all applicable laws, policies, and regulations across jurisdictions.
In response to U.S. export restrictions, Huawei has been strengthening its chip supply chain within China. The investigation will shed light on the extent of collaboration between Taiwanese companies and Huawei, clarifying potential implications for trade sanctions.
(Source: Hideaki Ryugen | Nikkei Asia)
