A new list of core technologies, including semiconductor process technologies, that are subject to tighter controls is not likely to affect Taiwanese vendors, Minister of Economic Affairs Wang Mei-hua (王美花) said yesterday.
Speaking to reporters on the sidelines of a ceremony where an agreement was signed on the formation of a 5G alliance in Taiwan, Wang said that the government had discussions with local chipmakers before the list was released.
“I do not think the controls will have any negative impact on Taiwanese semiconductor suppliers,” Wang said. “Instead, the controls aim to protect [Taiwan-developed] critical technologies.”
Photo courtesy of Ministry of Economic Affairs
On Tuesday, the National Science and Technology Council announced a set of 22 technologies subject to tight controls in five major areas: defense, aerospace, agriculture, semiconductors, and information and communications technology.
The 22 technologies include 14-nanometer and more advanced chipmaking process technologies and advanced IC packaging and testing technologies, including processes involving silicon photonics integration development and related specialty raw materials and equipment.
The National Security Act (國家安全法) stipulates that people who steal key technologies and leak them to China, Macau, Hong Kong or external hostile forces may be imprisoned for up to 12 years and fined up to two times the profit they garner.
Wang also cited the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (台灣地區與大陸地區人民關係條例), which states that companies that receive subsidies equal to more than 50 percent of their costs in developing critical technologies should secure approval before sending employees to China.
Industrial Development Administration Director-General Lien Ching-chang (連錦漳) on Tuesday said that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is unlikely to be negatively affected by the technology controls.
TSMC deploys technologies in Taiwan that are more advanced than 14-nanometer processes, while in China it uses 14-to-16-nanometer processes, which account for 10 to 12 percent of its total sales.
“I don’t expect TSMC to be bothered by the newly announced technology controls,” Lien said, adding that the controls on 14-nanometer or more advanced processes were in line with international standards, referring to the US.
Taiwan accounts for more than 70 percent of global production of 14-nanometer and more advanced chips.
Smaller contract chipmaker United Microelectronics Corp (UMC, 聯電) said it would follow the new tech controls, adding that 14-nanometer process technology deployment is limited to Taiwan, while it uses 22 and 28-nanometer processes in China.
Taiwan Institute of Economics Research researcher Arisa Liu (劉佩真) said the government’s move to tighten controls on critical technologies is needed, as Taiwan not only has to build a local semiconductor supply chain, but also must prevent leaks, in particular at a time when China is keen to poach Taiwanese engineers.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
The lethal hack of Hezbollah’s Asian-branded pagers and walkie-talkies has sparked an intense search for the devices’ path, revealing a murky market for older technologies where buyers might have few assurances about what they are getting. While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say. The response from the companies at the center of the booby-trapped gadgets that killed 37
FRIENDLY TAKEOVER: While Qualcomm Inc’s proposal to buy some or all of Intel raises the prospect of other competitors, Broadcom Inc is staying on the sidelines Qualcomm Inc has approached Intel Corp to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever merger and acquisition deals. California-based Qualcomm proposed a friendly takeover for Intel in recent days, said the sources, who asked not to be identified discussing confidential information. The proposal is for all of the chipmaker, although Qualcomm has not ruled out buying some parts of Intel and selling off others. It is uncertain whether the initial approach would lead to an agreement and any deal is likely to come under close antitrust scrutiny
SECURITY CONCERNS: The proposed ban on Chinese autonomous vehicle software and hardware would go into effect with the 2027 and 2030 model years respectively The US Department of Commerce today is expected to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on US roads due to national security concerns, two sources said. US President Joe Biden’s administration has raised concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the Internet and navigation systems. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the