Taiwan vows to keep advanced technology from China

As Washington steps up its efforts to contain the world's No, Taiwan pledged to work closely with the US and other allies to prevent China s military from acquiring state-of-the-art technology. Taiwan, home to the world's largest semiconductor foundry, will keep its advanced chip development at home while adopting measures to stop its technology from being used by the People's Liberation Army, C.C. The deputy minister of economic affairs, Chen, said on Wednesday.

The economy of Taiwan will not be able to decouple from its biggest trade partner, but it will implement very firm export controls to keep advanced technologies from China's military, Chen said. With respect to national security, we will take measures to safeguard our trade secrets, safeguard our key technologies, and safeguard our talents so that they are not poached illegally. Taiwan examined Alchip Technologies Inc. for allegedly providing advanced supercomputer chips to China's Phytium Information Technology Co., which some analysts say has links to the Chinese military and banned chip exports to Phytium, Chen said. We plug it when we find a loophole. The Washington Post reported in April 2021 that Phytium, which is affiliated with research arms of the Chinese military, relied on Alchip for certain designs. The Taiwanese company dealt with TSMC for production on behalf of Phytium, it said. The US eventually blacklisted Phytium, prompting Alchip to declare a suspension of shipments.

He said that the regulators will fine iPhone maker Foxconn Technology Group for failing to report an acquisition by the company's Shanghai-listed arm of a stake in China's top chipmaker, state-backed Tsinghua Unigroup.

The Biden administration is preparing new restrictions on chip exports to China, as a result of Chen s comments. They will formalize export controls on technology behind advanced semiconductors, while restricting access to chips used in supercomputing and artificial intelligence.

Read more: US Deals Heavy Blow to China Tech Ambitions With Nvidia Chip Ban

As the US wants to limit access to cutting-edge technology while boosting its domestic production capacity, Taiwan and the US allies South Korea and Japan have to navigate increasingly incompatible business and security interests.

Taiwan remains vulnerable as a leader in semiconductor production. Concern is growing in the US over its reliance on chip production in Taiwan as China ramps up military threats to the democratic, self-ruled island that Beijing says is part of Chinese territory. With the implementation of the $50 billion Chips Act, the US plans to cut its dependence on Taiwan for semiconductors over the next decade, US Secretary of Commerce Gina Raimondo said last week.

Taiwan Semiconductor Manufacturing Co. South Korea's Samsung Electronics Co. and Intel Corp. are all building new fabrication plants in the US, as Washington strives to increase chip production on American soil.

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