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Taiwan Accuses China of Unethical Practices in Chipmaking

Taiwan Accuses China of Unethical Practices in Chipmaking

In a recent interview with Reuters, Taiwan’s diplomat in Washington, Alexander Yui, made serious allegations against China, accusing its chipmakers of resorting to dishonest methods, including intellectual property theft, to rival Taiwan’s semiconductor industry. Yui dismissed the notion that China could soon match Taiwan’s prowess, particularly in producing chips on leading-edge nodes.

Yui emphasized that Chinese chipmakers are circumventing standard innovation practices and instead engaging in unethical behavior to advance their capabilities. Despite significant investments, he remains skeptical of China’s ability to produce leading-edge processors that could compete globally, especially amidst efforts by the U.S. to curb Beijing’s technological ambitions.

He stated, “They do not really follow the rules. They cheat and they copy, etc. They steal technology.” Yui acknowledged that in the early 2000s, China’s Semiconductor Manufacturing International Corp. (SMIC) was found guilty of stealing TSMC’s process technologies. However, modern technologies like 7nm and 5nm process nodes are so advanced that direct theft is nearly impossible. Instead, SMIC now focuses on hiring specialists from TSMC and Samsung Foundry to develop technologies in-house.

In response, a representative from the Chinese embassy in the United States criticized the allegations, stating they lack common sense and are motivated by spite. The embassy spokesperson emphasized that China’s scientific and technological achievements are built on its own strength and commitment to self-reliance and innovation.

The dialogue also addressed accusations by Donald Trump, a leading Republican candidate for the 2024 U.S. presidential election, who claimed Taiwan was stealing American jobs in the semiconductor industry. Yui refuted these claims, highlighting strategic investments by Taiwanese companies in the U.S., including TSMC’s significant investments in Arizona fabs, which strengthen Taiwan-U.S. partnerships.

Yui emphasized bipartisan support for Taiwan in the U.S., dismissing the idea that the island’s technological advancements and security interests are subject to partisan politics. As tensions between Taiwan and China persist, these accusations underscore the complexities and challenges in the semiconductor industry, with ethical concerns and geopolitical dynamics at play.

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News Source:

  1. Reuters
  2. Toms Hardware


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