Authorities in Taiwan will probe four local corporations over intelligence that they are helping Huawei Technologies in forming chipmaking infrastructure in China, but a Taiwanese Economic Affairs Minister says that no breach of U.S. trade sanctions has been confirmed.
Economic Affairs Minister Wang Mei-hua initiated the probe after a Bloomberg report was recently released naming the four companies to be investigated.
When the report was released, it was not verified if the controversial alliance violates U.S. trade sanctions enforced on Huawei.
“The companies offer services in wastewater and environmental protection processes, and they are not involved in critical technology,” Wang said.
However, the Minister pledged to extensively investigate the companies and the issue of a breach of U.S. sanctions.
Bloomberg charged the four Taiwanese firms with aiding Huawei in positioning their own grouping of chip factories in southern China.
In a released statement by Topco Scientific, a company fingered by Bloomberg, admitted to working with a semiconductor manufacturer who worked with Huawei.
However, Topco asserted it only cooperated on environmental protection, but there were never any business dealings concerning semiconductor materials or equipment.
United Integrated Services, another named company by Bloomberg, shared with the media that a Chinese subsidiary took a job to renovate the inside of a separate semiconductor manufacturer, which has been said to have dealt with Huawei.
Despite the connection between Huawei and United Integrated Services, the Taiwanese company said they did not break any laws and followed outlined procedures for such types of business.
The U.S. government imposed export constraints on Huawei that severed the corporation from supplies of chips that employ U.S. technology or equipment, which Huawei has countered by fortifying its chip supply chain in China.
