Taiwan’s government is investigating four businesses listed in a media report as doing business with Huawei (HWT.UL) in China and exploring stricter technology regulations.
Taiwan Economy Minister Wang Mei-hua said the ministry will investigate whether the businesses’ China operations “matched up” with their initial investment license from the island.
“If not, then the highest permitted fine is up to T$25 million ($775,300),” stated. Wang did not specify which rules the firms breached. She stated they handled waste water earlier this week.
This week, Bloomberg reported that the corporations were building chip plant infrastructure with Huawei-connected enterprises.
Topco Scientific (5434.TW), L&K Engineering (6139.TW), United Integrated Services (2404.TW), and Cica-Huntek Chemical Technology Taiwan (6725.TWO) deny wrongdoing.
Huawei did not comment immediately. The extended National Day holiday in China continues.
Wang also claimed Taiwan’s government will soon tighten “key technologies” laws based on worldwide practice, without providing details.
The Chinese telecom company has been banned from buying U.S. components and technology without permission for four years.
TSMC (2330.TW) and other Taiwanese tech companies have facilities in China, but the government restricts the manufacture of critical technologies and closely monitors their tech investment.
China claims Taiwan as its own and has boosted military activity there recently.