Next China: Odd Pairings

Hello, this is Debby Wu in Taipei.

Huawei’s big semiconductor ambitions have created some odd pairings for the Chinese tech giant.

Several Taiwanese firms are helping Huawei build infrastructure for its under-the-radar network of chip plants across southern China, Bloomberg News reported this week. It’s a collaboration that risks inflaming sentiment on the self-governed, democratic island that’s at the heart of geopolitical tensions between Washington and Beijing.

I admittedly wasn’t expecting we'd uncover evidence that four Taiwan-based suppliers — Topco Scientific, Cica-Huntek Chemical, L&K Engineering and United Integrated Services — were working with Huawei.

But neither was I entirely surprised. For months, I’d heard rumblings that chip suppliers were helping China build what amounted to an alternative semiconductor supply chain. Employees even freely admitted to me they were keen to assist Huawei with its ambitions, seeing it as a good business opportunity.

Some may be rethinking that position now. Our report made waves across Taiwan, culminating in Minister of Economic Affairs Wang Mei-hua on Wednesday agreeing to launch a probe into whether the quartet violated US sanctions by helping Huawei.