The recent election of Donald Trump and JD Vance has raised questions about potential shifts in US technology sanctions. A critical security concern emerged when TSMC chips were discovered in Huawei's Ascend 910B processor. This development has prompted US legislators to question Taiwan's reliability as a strategic partner, specifically regarding the National Science and Technology Council (NSTC)'s effectiveness in safeguarding core national technologies.
Background on the Huawei restrictions
US intelligence reports indicate that Huawei's communication technologies pose potential security risks for surveillance operations. Additionally, under Chinese law, the company must comply with Chinese Communist Party requests for sensitive information about foreign clients or nations.
These security concerns led the US to place Huawei on its Entity List in 2019 and subsequently pressure the British government to ban telecommunications companies from using Huawei's 5G equipment, warning that continued use would compromise US-UK military and national security intelligence sharing.
In response to the discovery of its chips in the Huawei Ascend 910B processor, TSMC has suspended shipments and initiated communication with the US Department of Commerce to address the situation.
Legal concerns and ambiguities
Taiwanese lawmakers warn that the leak of TSMC chips to a sanctioned entity like Huawei threatens to erode international trust in Taiwan. Concerns have also emerged about possible leaks to China's advanced defense weapons, military communications equipment, military AI, and drone programs. These developments have exposed potential weaknesses in Taiwan's technology controls under economic security considerations.
The TSMC chip leak to Huawei could significantly impact future US-Taiwan discussions regarding technological security commitments. Foreign Affairs Minister Chia-lung Lin acknowledged the need for stronger technology controls, particularly given China's position as a strategic competitor to the US.
Mainland Affairs Council Deputy Minister Wen-chieh Liang noted that while the NSTC regulates core national technologies, including processes below 14nm, there may be gaps in the current regulatory framework.
Based on Executive Yuan regulations announced on December 5, 2023, oversight primarily targets production technologies and trade secrets rather than finished or semi-finished products. Consequently, Huawei's acquisition of TSMC-manufactured advanced chips, as opposed to manufacturing technology, may not technically violate the National Security Act or the Cross-Strait Act.
