Taiwan accused China of stealing chip manufacturing technology

The Taiwanese diplomat in Washington Alexander Yui accused China of trying to compete with Taiwan in the semiconductor industry using unfair methods, including theft of intellectual property. The Chinese Ambassador to the US denies any wrongdoing by Chinese companies.

In fact, the de facto Taiwanese ambassador to the US accused Chinese chip manufacturers of bypassing standard innovation practices and instead resorting to dishonest methods to expand their capabilities. Despite significant investments, Yui remains skeptical of China's ability to produce advanced processors that could compete on the world stage, especially in light of the coordinated efforts of the US to curb Beijing's technological ambitions through export restrictions and other measures.

They don't really follow the rules. They deceive and copy. They steal technologies.

— Yui said in an interview with Reuters.

Truth be told, the Chinese leader in semiconductor production, Semiconductor Manufacturing International Corp., stole technological processes from Taiwan's TSMC in the early 2000s and was twice found guilty of this, as reported by Tom's Hardware. However, modern technologies, such as the 7nm and 5nm technological nodes, are so complex that stealing them is practically impossible. Therefore, instead of stealing cutting-edge production technologies, SMIC hires specialists from TSMC and Samsung Foundry.

A representative of the Chinese Embassy in the US called this accusation senseless and motivated by malice.

China's scientific and technological achievements are not achieved through "deception" and "theft." Our development has always been built on our own efforts, and we are confident that we will continue to strengthen China's self-sufficiency and technological innovation.

— said the representative of the Chinese Embassy Liu Pengyu.

The dialogue also touched on allegations by Donald Trump, who claimed that Taiwan was stealing American jobs in the semiconductor industry. Yui refuted these claims, noting the strategic investments of Taiwanese companies in the US, specifically mentioning TSMC's significant investments in factories in Arizona, which make Taiwan a partner of the US, not a competitor. Yui also emphasized the bipartisan support that Taiwan enjoys in the US.