Two Taiwanese companies identified in a Bloomberg report as doing business with Huawei Technologies Co (華為)-linked chipmakers in China yesterday said that their dealings in the country did not contravene US sanctions and were in line with national security laws.
Citing the Semiconductor Industry Association, Bloomberg on Tuesday reported that Huawei had set up “its own shadow network of chipmakers” with the support of the Chinese government in a bid to evade US sanctions.
Bloomberg’s report suggested that Huawei has been relying on three little-known firms in Shenzhen — Pengxinwei IC Manufacturing Co (鵬芯微), Pensun Technology Co (鵬新旭) and SwaySure Technology Co (昇維旭) — to produce chips based on its designs, with the involvement of four Taiwanese firms — chip material reseller Topco Scientific Co (崇越), cleanroom equipment supplier L&K Engineering Co (亞翔), construction specialist United Integrated Services Co (漢唐) and chemical supply system provider Cica-Huntek Chemical Technology Taiwan Co (矽科宏晟).
Photo: Reuters
Bloomberg reported that subsidiaries of the four Taiwanese companies had engaged in “unusual” dealings with the three firms, in a manner that “may be helping Huawei develop semiconductors to effectively break an American blockade.”
In a statement yesterday, L&K Engineering said that its Suzhou-based subsidiary was engaged in interior architecture work and electric and line pipe layout, adding that its business in China did not involve technologies and semiconductor equipment sales restricted by Washington.
Cica-Huntek Chemical Technology said that although it has received orders from Pengxinwei and Pensun since June last year to provide chemical supply system solutions for the two Chinese firms’ plants, it has never provided them with IC equipment.
The company said that as it has conducted business legally and followed national policy, it would continue to pursue its contracts with the two Chinese clients.
The statements from Cica-Huntek Chemical Technology and L&K Engineering came a day after Topco Scientific and United Integrated Services denied that their businesses in China had broken any laws by operating in the country.
Minister of Economic Affairs Wang Mei-hua (王美花) on Tuesday told reporters that, to her knowledge, the four Taiwanese companies were not supplying any key technologies or equipment to Huawei, as local companies are legally barred from providing key technologies to China while investing in the Chinese market.
HANDOVER POLICY: Approving the probe means that the new US administration of Donald Trump is likely to have the option to impose trade restrictions on China US President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days as part of a push to reduce reliance on a technology that US officials believe poses national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, vehicles, smartphones and weaponry, people familiar with the matter said. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings would be left to the discretion of US president-elect Donald Trump’s incoming team. Biden
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
HON HAI LURKS: The ‘Nikkei’ reported that Foxconn’s interest in Nissan accelerated the Honda-merger effort out of fears it might be taken over by the Taiwanese firm Nissan Motor Co has become the latest buyout target in Japan as it explores a merger with Honda Motor Co and faces an overture from Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) internationally. Shares in Nissan yesterday jumped 24 percent, the most on record, to hit the daily limit, after the two Japanese automakers acknowledged that talks are ongoing to better position themselves for competitive challenges during a time of upheaval in the global auto industry. Foxconn — a Taipei-based manufacturer of iPhones, which has been investing heavily in factories to build electric vehicles — has also
CHIP SUBSIDY: The US funding would help alleviate the financial pressure from building two fabs in the US and should lift gross margins in 2026, the company said GlobalWafers Co (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday said it is to receive US$406 million in subsidies from the US Department of Commerce for two new US fabs under the CHIPS and Science Act, with the first batch of the funds likely coming next year. The grant represents 10 percent of the planned investments of US$4 billion in advanced semiconductor wafer manufacturing facilities in Texas and Missouri, GlobalWafers said. The commerce department is to disburse the funds based on the completion of project milestones over a multiyear timeframe, the company said. Along with the tax credit, which is equal to
RSS