Italian officials hinted in private talks with Taiwan that they might be willing to pull out of a controversial pact with China as they sought to secure help with semiconductors, people familiar with the issue said.
Officials from the Italian Ministry for Business and Made in Italy discussed plans to increase cooperation on the production and export of semiconductors during recent meetings in Taipei, said the people who asked not to be named as the talks are not public.
The officials told their Taiwanese counterparts that Italy might scrap its participation in China’s Belt and Road Initiative, a massive global infrastructure program.
Photo: AP
A decision on the matter would have to be taken by Italian Prime Minister Giorgia Meloni, who has not taken a final position, the people said.
Italy is the only G7 country that has signed up to the Chinese scheme.
Even though the memorandum of understanding has had little practical impact since it was signed by former Italian prime minister Giuseppe Conte in early 2019, it has a highly symbolic value for Beijing at a time of mounting tensions with the US and allies.
The agreement would be automatically renewed in 2024 unless Italy ditches it.
A spokesperson for the ministry declined to comment.
The visit by senior officials showed that Italy is willing to deepen diplomatic relations with Taiwan.
Taiwan aims to open a second representative office in Italy, in Milan, local media reported.
Italy’s decision on the memorandum of understanding would be closely watched in Washington and other capitals as a sign of Meloni’s capacity to turn her staunch pro-US rhetoric into facts.
Meloni and officials from her far-right Brothers of Italy party have in the past criticized China’s stance on Taiwan, but since taking office at the end of last year, Meloni has avoided public references to the matter, as the EU struggles to balance security concerns with deep economic ties to China.
Earlier this month, a group of Italian lawmakers scrapped a trip to Taipei at the last minute.
French President Emmanuel Macron sparked outrage among partners earlier this month by suggesting that the bloc should avoid being dragged into a dispute with Beijing by the US.
Macron said after a visit to Beijing that the bloc should not become a “vassal” in a US-China clash.
Meanwhile, a case involving tire maker Pirelli SpA offers the Italian government another opportunity to scale down economic ties with Beijing.
Italian officials are studying ways to curtail the influence of China’s Sinochem Group (中化集團), Pirelli’s largest shareholder.
The supply of semiconductors is key for the EU and the US to reduce exposure to supply chain disruptions amid growing tensions with China. Italy is particularly dependent on the supply of semiconductors, which are crucial for its automotive industry.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS