• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
TechEngage®

TechEngage®

Technology news and opinions

  • Tech News
  • Reviews
  • How-to
  • Roundups
  • Science
    • Energy
    • Environment
    • Health
    • Space
  • Apps
  • More
    • Opinion
    • Noteworthy
    • Culture
    • Blockchain
      • Cryptocurrency
    • Events
    • Deals
    • Startups
      • Startup Submissions
  • Videos
TechEngage » News » Components

China’s ties with Taiwan’s chip firm under scrutiny

Avatar Of Noor Imtiaz Noor Imtiaz Updated: February 1, 2019

Chip
Photo by Johannes Plenio on Unsplash

There has been widespread discontent in the US over the growth of China. China is moving swiftly towards being a global player in computer chips. Chip firms from Taiwan are the biggest trade partners for China. This is hence leading to a scenario of increased sanctions on China by the US. The US authorities have already displayed their distaste officially after they cut off supply to a Chinese chip-maker. The world has been cornering China as far as international semiconductor deals are concerned. This had moved China to further its trades with chip firms in Taiwan.

However, the main contributor to the Chinese chip manufacturing industry in Taiwan has also halted its joint research ventures with China. The Taiwanese chip giant United Microelectronics Corp (UMC) has pulled this following the US. This has thrown the Chinese government-backed Fujian Jinhua Integrated Circuit Co Ltd into a setback.

Also read: Russian hackers are planning another malware attack

Chip Trading History

The Chinese chip market has been booming, and UMC has been the primary supplier for it. Due to international politics, China has been unable to land a helpful deal regarding semiconductors. This has led to the country being deficient in integrated chips for years. It has been reported that Chinese imports of semiconductors in 2017 crossed a whopping 270 billion dollars. This was even more than the money spent by China that year on importing oil.

As a result of this acute deficiency, China has launched more than ten joint ventures with Taiwanese tech companies. Special partnership deals by the Chinese have worked on attracting Taiwanese experts with hefty salaries and benefits. However, the US is keeping a close eye on the unfolding events. Randy Abrams, an analyst at Credit Suisse in Taipei, says:

“Such companies will need to also take care to ensure no patent or IP infringement is involved as the U.S. has export control means to restrict support of critical technology.”

The most valuable trade partnerships for China in this scenario are the ones that bring foundry services and memory chip production.

Trade Tensions

This transfer of technology between China and Taiwan has the US in knots. The historical importance becomes prominent considering the ongoing Sino-US trade war. The current Republican government has been intent on banning Chinese products. The situation is only expected to escalate further from here.

Amidst tensions, the Taiwanese government has also admitted to keeping its trade with China under a strict observing eye. The authorities are seriously concerned about losing too much of their patented technology to China. The industrial development bureau at the economics ministry Taiwan said:

“When businesses go to the mainland to invest in wafer production, they must accept controls including one that requires the manufacturing technology to be a generation behind.”

Under the sanctions that the US has put especially on Fujian Jinhua, its position is unsure. The biggest takeaway from the sanctions was the conviction on both UMC and Fuijan Jinhua. These accusations claimed that the two companies had stolen trade secrets from Micron. All three parties involved need serious re-evaluation in this delicate matter.

This post was orginally published on: November 8, 2018 and was updated on: February 1, 2019.

Related Tags: Taiwan chip

Related Stories

  • 1Tb Drive From Huawei To Backup Your Mate 20 Automatically

    1TB drive from Huawei to backup your Mate 20 automatically

  • Samsung Announces Two Sexy New Monitors Ahead Of Ces 2019

    Samsung announces two sexy new monitors ahead of CES 2019

  • Going Around The Basics Of Pipe Coiling And Its Application In Several Key Industries

    Going around the basics of pipe coiling and its application in several key industries

Avatar Of Noor Imtiaz

Noor Imtiaz

Former News Reporter

Currently a MS student in Healthcare Biotech at Pakistan’s National University of Science and Technology juggling pure science and creative writing. I’m an avid reader who makes more time for books than Netflix.

Reader Interactions

Share Your Thoughts Cancel reply

Please read our comment policy before submitting your comment. Your email address will not be used or publish anywhere. You will only receive comment notifications if you opt to subscribe below.

Primary Sidebar

Become a contributor

We are accepting contributor applications. All applications will be decided in 3 days after applying. To learn more click here.
TechEngage-Apple-News
TechEngage-Google-News
best Civilization VI alternatives

Best games like Civilization VI to play in 2023

A featured image design for best tech news app

Best Technology News Apps for Android

Recent Stories

  • Apple strengthens account security with hardware keys support
  • 10 Best Messenger Apps in 2023
  • Essential Netflix tips and tricks 2023
  • How to lock Netflix profiles in 2023
  • Best laptop cooling pads to buy on Amazon in 2023

Footer

Discover

  • About us
  • Newsroom
  • Staff
  • Advertise
  • Send us a tip
  • Startup Submission Questionnaire
  • Brand Kit
  • Contact us

Legal pages

  • Reviews Guarantee
  • Community Guidelines
  • Corrections Policy and Practice
  • Cookies Policy
  • Our Ethics
  • Disclaimer
  • GDPR Compliance
  • Privacy Policy
  • Terms and Conditions

Must reads

  • Best AirPods alternatives on Amazon
  • Best PC monitors for gaming on Amazon
  • Best family board games
  • Best Graphics Cards (GPUs) for gaming
  • Best video doorbells without subscription
  • Best handheld video game consoles
  • Best all-season tires for snow
  • Best mobile Wi-Fi hotspots
  • Best treadmills on Amazon
  • Best AM radios for long-distance reception

Download our apps

TechEngage-app-google-play-store

Copyright © 2023 · All Rights Reserved · TechEngage® is a Project of TechAbout LLC.
TechEngage® is a registered trademark in United Kingdom under Trademark Number UK00003417167 and is ISSN protected under the ISSN 2690-3776 and OCLC Number 1139335774.

Go to mobile version