Taiwan Looking at Tighter Rules on Key Tech Such as Chips

Taiwan is considering imposing tighter rules on key technologies such as computer chips.

The Taiwanese government is also investigating four companies accused of conducting business with firms linked to US-sanctioned Huawei in China.

Taiwan Economy Minister Wang Mei-hua said the ministry would be looking into whether the four firms’ activities in China “matched up” with their initial investment approval from the island’s government.

“If not, then the highest permitted fine is up to T$25 million ($775,300),” she said.

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Infrastructure for chip plants

Wang did not give details on what rules the companies may have broken. She said earlier this week they had been engaged in low-end work like handling waste water.

A news report this week said the firms had been working with Huawei-connected firms to build infrastructure for chip plants.

The companies – Topco Scientific, L&K Engineering, United Integrated Services and Cica-Huntek Chemical Technology Taiwan – have all denied any wrongdoing.

Huawei did not immediately respond to a request for comment. China is in the middle of its long National Day holiday.

Wang also said Taiwan’s government will soon unveil tighter rules on “key technologies”, taking into account international practice, she added, without giving details.

The Chinese telecommunications giant Huawei has, for the last four years, been barred from obtaining components and technology from US firms without approval.

While many Taiwanese tech companies, including chipmaker TSMC, have operations in China, Taiwan’s government bans production of the most sensitive technology in the country and keeps a close watch on all its companies’ tech investment there.

China claims Taiwan as its own territory and has in recent years increased its military activities around the island.