China Underground > China Finance > Chip war, US and Taiwan ban 7 Chinese companies

Chip war, US and Taiwan ban 7 Chinese companies

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The government of Taipei on Wednesday said Taiwanese chip companies will adhere to US rules after the US added seven supercomputing entities to a blacklist and after a Taipei-based chip maker suspended orders from these companies.

According to the US Department of Commerce, the seven Chinese entities were “involved in building supercomputers used by Chinese military actors” needed for military modernization and / or weapons of mass destruction programs. The US move came amid growing tensions with China over Taiwan. China has never given up on the use of force to bring the rebel island under its control.

Taiwanese technology companies are the leading semiconductor suppliers globally, and Economy Minister Wang Mei-hua said they will follow Taiwanese and US rules.

“Our companies, whether producers or exporters, must accord with our country’s rules. Of course the United States has new rules, and our companies will pay attention and accord with the key criteria of the U.S. rules,” Wang Mei-hua said.

The move also came amid a global semiconductor shortage that has pushed Taiwan to center stage in the technology supply chain.

Alchip Technologies Ltd said it has stopped production of all products related to Tianjin Phytium Information Technology, (FeiTeng, 飞腾), which is on the new US listing. Phytium accounted for 39% of Alchip’s earnings last year. Hong Kong’s South China Morning Post also reported that Taiwan Semiconductor Manufacturing Company Co Ltd (TSMC), the world’s largest contract chipmaker, has also suspended new orders from Phytium.

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