Taiwanese diplomat in Washington, Alexander Yu, has accused China of trying to compete with Taiwan in the semiconductor industry through unfair means, including theft of intellectual property. China's ambassador to the United States denies any wrongdoing by Chinese companies.
Taiwan's de facto ambassador to the United States has accused Chinese chipmakers of bypassing standard innovation development practices and instead resorting to nefarious methods to expand their capabilities. Despite the significant investment, Yu remains skeptical about China's ability to produce cutting-edge processors that can compete on the global stage, especially amid concerted U.S. efforts to curb Beijing's technology ambitions through export restrictions and other measures.
They don't really follow the rules. They cheat and copy. They steal technology.
—Yu said in an interview with Reuters.
In truth, the Chinese leader in chip production Semiconductor Manufacturing International Corp. stole technological processes from Taiwan's TSMC in the early 2000s and was found guilty of it twice, reports Tom’s Hardware. However, modern technologies such as 7nm and 5nm process nodes are so complex that it is almost impossible to steal them. Therefore, instead of stealing advanced manufacturing technologies, SMIC hires specialists from TSMC and Samsung Foundry.
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A spokesman for the Chinese Embassy in the United States called the accusation devoid of common sense and motivated by malice.
China's scientific and technological achievements are not achieved through “cheating” and “theft.” Our development has always been built on our own strength, and we are confident that we will continue to strengthen China's ability for self-reliance and technological innovation.
— said Chinese Embassy representative Liu Pengyu.
The dialogue also touched on allegations from Donald Trump that Taiwan is stealing American jobs in the semiconductor industry. Yu rebutted them, noting Taiwanese companies' strategic investments in the US, particularly citing TSMC's significant investments in Arizona plants that make Taiwan a US partner rather than a competitor. Yu also emphasized the bipartisan support Taiwan enjoys in the US.