Concerns Over China’s Chip Technology Ambitions

Amid rising tensions, China boosts defence spending by 7.2% in 2024, omitting 'peaceful reunification' mention in the budget report, indicating a more aggressive stance towards Taiwan.

In a recent interview with Reuters, Alexander Yui, Taiwan’s representative to Washington, voiced concerns over China’s attempts to close the gap in chip technology, accusing China of resorting to unethical practices such as cheating and stealing technology. Despite significant investments, Yui noted that China has yet to match Taiwan’s prowess in chip manufacturing.

 

Yui expressed skepticism regarding reports suggesting that China’s chipmakers are on the verge of producing next-generation smartphone processors. He also refuted claims made by Donald Trump, a leading Republican candidate for the 2024 US presidential election, alleging that Taiwan is usurping American semiconductor jobs.

 

Since assuming his role in Washington in December, Yui has emphasized the importance of US support for Taiwan’s defense capabilities. While he hopes for the passage of a supplemental security funding bill by the US Congress, Yui downplayed the possibility of Washington stockpiling weapons in Taiwan to deter potential military actions by China.

 

Highlighting China’s alleged disregard for international norms, Yui criticized its chipmakers for engaging in unfair practices, including technology theft and coercion. He cited investigations conducted by Taiwan’s intelligence agencies into Chinese companies suspected of illegally poaching semiconductor engineers and other tech talent.

 

Yui also addressed restrictions imposed by Washington on US companies, prohibiting them from providing technology to certain Chinese chipmakers without a special license. Despite China’s extensive investments in semiconductor companies, Yui noted that many of these endeavors have failed to yield significant results.

 

Responding to Trump’s previous remarks suggesting that Taiwan has harmed US business in the chip industry, Yui emphasized the cooperative relationship between Taiwan and the United States. He highlighted Taiwan Semiconductor Manufacturing Co (TSMC)’s plans to establish a presence in the United States, indicating a strategic partnership between the two nations.

 

While Yui declined to comment on whether Taiwan sought to engage with the Trump campaign, he emphasized Taiwan’s bipartisan support in the United States. He also expressed Taiwan’s willingness to receive assistance from Congress and the administration to enhance its defense capabilities.

 

Regarding the possibility of a regional contingency stockpile of munitions and defense articles for Taiwan, Yui suggested that such stockpiles would not be located on the island. However, he reiterated Taiwan’s openness to US support in bolstering its defense capabilities amid escalating tensions with China.

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