Taiwan probes four firms accused of helping China's Huawei

Topco Scientific Co

06/10/2023 03:43

TAIPEI, Oct 6 (Reuters) - Taiwan's government has opened
an investigation into four companies named in a media report as
conducting business with firms linked to U.S.-sanctioned Huawei
 HWT.UL  in China, and is considering tighter rules on key
technologies.
    Taiwan Economy Minister Wang Mei-hua said the ministry would
be looking into whether the 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.
    Wang did not give details on what rules the companies might
have broken. She said earlier this week they had been engaged in
low-end work like handling waste water. 
    A Bloomberg news report this week said the firms had been
working with Huawei-connected firms to build infrastructure for
chip plants.
    The companies - Topco Scientific  5434.TW , L&K Engineering
 6139.TW , United Integrated Services  2404.TW  and Cica-Huntek
Chemical Technology Taiwan  6725.TWO  - 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 has, for the last four
years, been barred from obtaining components and technology from
U.S. firms without approval.
        While many Taiwanese tech companies, including chipmaker
TSMC  2330.TW , 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.
    
($1 = 32.2470 Taiwan dollars)

 (Reporting by Ben Blanchard; Editing by Edwina Gibbs)
 ((ben.blanchard@thomsonreuters.com;))