Taiwan Minister alleges China sparked economic war to dominate Taiwanese semiconductor sector

Taipei/Beijing/Washington: – Taiwanese Minister Lo Ping Chang accused China has sparked an economic war to gain control over the Taiwanese semiconductor sector. Chang claimed that the tactics include theft of semiconductor technologies, pressuring skilled workers to migrate and use of financial muscle. The Taiwanese government has started inquiries of 60 Chinese citizens along with Chinese companies in the matter. Only last month, a leading European company had accused a leading Chinese company in the semiconductor sector of trying to steal the company’s trade secrets and intellectual property.

Over the last decade, Chinese companies have taken the lead in various sectors, from 5G to Artificial intelligence. To strengthen this leadership position, China has diverted its attention to the semiconductor sector and has made its moves more aggressive in the sector since 2018. The Chinese ruling government has doubled the investment in research and development in the industry. Trade war against the United States and the ambition to become the superpower in the technology sector are said to be the reasons behind this.

In the current scenario, the Chinese companies depend on the United States, Europe, and Taiwan for their semiconductor needs. TMC, the current leader in the semiconductor sector, is from Taiwan. Out of the ten leading companies, six are from the United States, two are from South Korea and one is from Europe. There is no possibility of China getting any assistance from these companies, leading the semiconductor sector, given the tensions reigning between China and the western countries. Therefore, China is vying to progress, taking help from active companies but not leaders in the field.

At the same time, Taiwan, the leader in the semiconductor sector, is being targeted. Taiwanese companies are supplying semiconductors to China and some of these companies even have their factories in China. But China has started targeting the advanced technology and skilled workforce in these companies. Taiwanese executive Minister Ping Chang accused certain Chinese companies of starting operations in Taiwan, violating the Taiwanese rules and regulations. Chang said these are a part of the economic war sparked by China against Taiwan.

Meanwhile, the United States has initiated efforts to open a new front with Taiwan, Japan and South Korea. A daily from South Korea has reported this. This front is said to be a part of the US efforts to stop the Chinese activities in the semiconductor sector. Although Taiwan and Japan have consented to join the front, South Korea is said to oppose the idea. The South Korean daily noted that the concerns regarding the South Korean companies’ investments in China are the main reason behind the opposition.