Taiwanese companies help Huawei build chip manufacturing plants in China

Several Taiwanese tech companies are helping Huawei Technologies Co. build infrastructure for a secret network of chip factories in southern China. The unusual cooperation was reported by Bloomberg.

We are talking about several such projects in the Chinese city of Shenzhen. According to the publication, they involve divisions of Topco Scientific Co., L&K Engineering Co. and United Integrated Services Co.

Another Taiwanese company, Cica-Huntek Chemical Technology Taiwan Co. announced on its website that it had won contracts to build chemical supply systems for two Chinese chipmakers, Shenzhen Pensun Technology Co. and Pengxinwei IC Manufacturing Co. Both companies are recognized as working with Huawei to build chip production facilities and are blacklisted by the United States.

Such cooperation could provoke a negative reaction from Taiwan, which is preparing for elections next January. This raises many questions given that China regularly threatens Taiwan with military action.

Earlier it was reported that the tech sector of China is indeed suffering from US sanctions on chip sales.