China’s Attempt to ‘Cheat’ Its Way to Chip Dominance is Failing, Says Taiwan’s US Envoy – Reuters

By Michael Martina and David Brunnstrom

WASHINGTON – China has attempted to "cheat" and "steal" its way to rivaling Taiwan in chip technology, but has not achieved this goal despite significant investments, said Taiwan’s de facto envoy to Washington, Alexander Yui, during an interview. He suggested that Taiwanese semiconductor firms may invest more in the United States in the future.

During the conversation, Yui expressed skepticism regarding reports that Chinese chipmakers are on the verge of producing next-generation smartphone processors. He also countered claims made by Donald Trump, the leading Republican candidate for the 2024 presidential election, suggesting that Taiwan is responsible for taking American semiconductor jobs.

Yui, who took office in Washington in December, replacing Hsiao Bi-khim, now Taiwan’s vice president-elect, expressed hope that the U.S. Congress would approve a supplemental security funding bill aimed at bolstering Taiwan’s defenses. However, he diminished expectations that Washington would stockpile weapons on Taiwanese soil to deter potential military actions from China, which regards Taiwan as part of its territory.

"They don’t really follow the rules. They cheat and they copy, etc. They steal technology," Yui commented about Chinese chipmakers, casting doubt on their ability to produce viable next-generation processors this year amidst U.S. efforts to limit China’s advanced technological development.

A representative from the Chinese embassy in the U.S. dismissed these allegations, referring to them as "ill-intentioned" and lacking common sense. The spokesperson emphasized that China’s scientific and technological advancements come from its own efforts, asserting confidence in the nation’s capability for self-reliance and innovation.

The U.S. government has accused China of using its vast market and control over supply chains to pressure countries into transferring critical technology. Washington also highlights extensive cyber theft as a primary threat to U.S. technological competitiveness. Taiwanese intelligence agencies have investigated numerous Chinese firms for allegedly stealing semiconductor talent.

U.S. companies are restricted from providing technology to certain Chinese chipmakers, including Semiconductor Manufacturing International Corp, due to their alleged military ties.

Yui remarked that the Chinese companies heavily invested in have largely failed to make significant progress. He also addressed Trump’s comments made on Fox News, which suggested that Taiwan’s semiconductor industry had taken American jobs and warranted tariffs from the U.S. Trump claimed that Taiwan had eliminated U.S. business; however, Yui disagreed, insisting that Taiwan and the U.S. are partners in this sector. He noted ongoing considerations by Taiwanese firms, such as TSMC, to invest in the U.S., with plans for expansions in Arizona.

Yui did not disclose whether Taiwan has reached out to the Trump campaign but expressed that the island maintains friendships and support from both major U.S. political parties.

Currently, a comprehensive international security assistance package for Taiwan, including billions in funding, is stalled in Congress due to Republican demands for a revision of U.S. immigration policies. Yui welcomed all forms of assistance from the U.S. towards strengthening Taiwan’s defense capabilities.

The U.S. military is seeking secure locations in the Pacific for potential stockpiles of equipment and munitions in case of conflict with China. Although U.S. law allows the president to create a regional stockpile for Taiwan, Yui played down the likelihood that such stockpiles would be established on the island. "The stockpiles won’t happen in Taiwan, I think," he concluded.