Taiwan’s government said on Saturday that Taiwanese semiconductor companies attach “great importance” to compliance with the law, noting that they will comply with new US export controls aimed at hampering China’s chip industry, according to a Reuters report.
The rules announced by the administration of President Joe Biden on Friday include a measure to isolate China from some chips made anywhere in the world with American equipment, in an attempt to slow Beijing’s technological and military progress.
Taiwan is a major producer of chips, as it is home to Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chip maker and a major supplier to US companies, including Apple.
In a statement, Taiwan’s Ministry of Economy said that Taiwanese companies abide by the law.
“The Taiwanese semiconductor industry has long served global customers and attaches great importance to compliance with laws,” it said.
“In addition to complying with local laws and regulations, it will also cooperate with the needs of international customers who impose certain standards in their countries,” it added.
The ministry said Taiwan’s semiconductor industry is a technology-leading industry and wants to continue to “maintain its competitive advantage against foreign customers”.
The ministry said the government continues to maintain close contact with manufacturers and supports them in investing in expanding factories and supplying products to the world for technological development.
TSM declined to comment on the new US rules, and United Microelectronics (a smaller competitor) declined to comment ahead of its earnings release later this month.
Taiwan has its own concerns about China, especially the efforts of Chinese companies to garner talent and technical know-how, and the Taiwanese government severely restricts attempts to invest Taiwanese chips in China, its largest trading partner.
Taiwan’s fears have grown with China holding regular military exercises near the island in an attempt to force it to accept Beijing’s sovereignty.
The United States is the most important international supporter and supplier of arms to Taiwan, despite the absence of formal diplomatic relations.
Taiwan’s Economy Minister Wang Mei-Hwa will visit the United States next week to respond to what her office called “concerns” about supply chains and geopolitical issues, as well as visit US technology companies that are major customers of Taiwan’s semiconductor firms.