Taiwanese Companies Deny Helping Huawei Produce Chips

Huawei
(Image credit: Huawei)

Three Taiwanese companies — Topco Scientific, UIS, and L&K Engineering — have been accused of assisting Huawei in developing wafer fabs in China, despite the U.S.'s sanctions. Topco and UIS denied claims that they helped Huawei, emphasizing their adherence to international regulations and Taiwanese laws, according to a report by DigiTimes. L&K Engineering has yet to comment on the matter.

Topco Scientific clarified its position by stating its dealings with PengXinWei, an affiliate of Huawei, were purely environmental — specifically, regarding wastewater treatment projects. The company emphasized that it stands against delivering semiconductor materials to the tech giant. Additionally, the company detailed its engagement in an environmental project in early 2022, noting that the mentioned Chinese entity (PengXinWei) was not on the U.S. Entity List at that time.

UIS, which specializes on construction engineering services for semiconductor producers, firmly denied any direct involvement with Huawei. It highlighted a contract its Chinese subsidiary had with Shenzhen-based SwaySure, which focused on an 'interior plant modification project.' UIS accentuated its compliance with Taiwanese regulations and policies throughout its operational history, distancing itself from any controversial engagement.

Despite the challenges posed by US sanctions — particularly those limiting access to essential chip technologies — Huawei remains undeterred. The tech giant recently introduced its new Mate 60 Pro 5G smartphones powered by in-house developed HiSilicon Kirin 9000s SoC, produced by SMIC (allegedly in violation of U.S. sanctions). Huawei's investment branch funded over 70 Chinese semiconductor entities, spanning multiple sectors from equipment to IC design.

To genuinely impede Huawei's growth in the semiconductor industry, some market observers argue that the U.S. needs a stricter, more encompassing strategy. Suggestions have included halting equipment exports to China from prominent suppliers and supervising transactions, especially involving second-hand equipment and possible indirect dealings via Middle Eastern countries.

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • ingtar33
    this is an horrifying accusation. I know no one here cares but how much international diplomacy is driven by microprocessor fabs is pretty eye opening. Taiwan has been guaranteeing it's independence by making itself invaluable to the microprocessor manufacture infrastructure, and be adhering to US controls over who gets the tech and who doesn't. by breaking those agreements those three companies are endangering Taiwan's independence from china.

    If those companies actually did this those executives and anyone involved will probably be thrown in a taiwanese jail for decades. if not outright executed as traitors. this is deadly serious stuff for taiwan.
    Reply
  • williamcll
    ingtar33 said:
    If those companies actually did this those executives and anyone involved will probably be thrown in a taiwanese jail for decades. if not outright executed as traitors. this is deadly serious stuff for taiwan.
    The current Neo-Liberal party would get serious flack for doing this when the rest of the "free world" is trying to end capital punishment.
    Reply
  • PhysX_HW
    The US doesn't seem to realize that these sanctions will only speed up China's independence in designing and manufacturing their own semiconductors and semiconductor fabs. The CCP can and does put a lot of money into the sector and they have tight controls over every single company, something that the US never had.

    Now, I'm not trying to support China or the US in any way, but I'm quite certain that these US sanctions won't have much of an effect on China's ability to produce its own semiconductors.
    Reply
  • sauve.richard
    williamcll said:
    The current Neo-Liberal party would get serious flack for doing this when the rest of the "free world" is trying to end capital punishment.
    Just tossing this out there, but what do you mean by Neo-Liberal? Because my understood definition would have nothing to do with capital punishment at all, more a fiscal definition.
    Reply