Taiwan says chip companies will comply with new U.S. rules to blacklist China’s supercomputing entities

Taipei — Taiwan on Wednesday after Washington added seven Chinese supercomputing entities to the economic blacklist last week and a Taipei-based chip maker suspended orders from one of the designated entities. He said he would comply with US rules.

The U.S. Department of Commerce said seven Chinese entities were “involved in building supercomputers used by Chinese military personnel, their destabilizing military modernization efforts, and / or weapons of mass destruction programs.” ..

Companies on the US business entity list or other companies must apply for a license from the Department of Commerce, which faces strict scrutiny when seeking permission to receive goods from US suppliers.

Taiwanese technology powerhouse is a major supplier of semiconductors in the world, and Economic Minister Wang Mika said it will comply with the rules of Taiwan and the United States.

“Our company, whether a producer or an exporter, must obey the rules of our country. Of course, there are new rules in the United States and our company pays attention. , Will meet the key standards of US rules, “she told reporters.

The US move took place amid growing tensions with China over Taiwan. China has never abandoned the use of force to bring democratically dominated islands under its control.

It also pushed Taiwan to the center of its technology supply chain amid a global semiconductor shortage.

On Tuesday, Taiwan’s Alchip Technologies Ltd announced that it has stopped producing all products related to Tianjin Phytium Information Technology on the new list in the United States.

Alchip said 39% of last year’s revenue came from Phytium, “a detailed document for US advisers to determine if a product is subject to an EAR (Export Control Regulations).” He added that he was collecting.

The Bureau of Industry and Security of the US Bureau of Industry added, “If necessary, obtain a permit for Phytium products.”

Shares fell 9.9% on Wednesday, causing more than one-third loss of shares since the Commerce Department announced last week.

Separately, Hong Kong’s South China Morning Post reported that Taiwan Semiconductor Manufacturing Company Limited (TSMC), the world’s largest contract chip maker, has suspended new orders from Fitium.

TSMC said it could not confirm the report and declined further comments.

TSMC’s share price rose 1.16% on Wednesday, outpacing a 0.24% rise in Taiwan’s broader stock market.

Ben Blanchard