Chinese Chipmaker Vindicated after Being Accused of Stealing US Technology

February 29, 2024

Chinese Chipmaker Vindicated after Being Accused of Stealing US Technology

On February 27, Fujian Jinhua Integrated Circuit Co Ltd., a Chinese state-owned chipmaker, was finally vindicated by the court after being blacklisted by the US Commerce Department for over five years.

The U.S. Justice Department in 2018 announced an indictment against Fujian Jinhua, alleging it stole intellectual property from U.S.-based Micron Technology (MU.O). In the same year, U.S. authorities added the Chinese firm to a list of entities that cannot buy components, software or technology goods from U.S. firms.

On Tuesday, US District Judge Maxine M. Chesney in San Francisco found the company not guilty following a non-jury trial. Chesney concluded that US prosecutors failed to prove that Fujian Jinhua misappropriated proprietary data from Micron Technology

He Weiwen, a senior fellow from the Center for China and Globalization, points out that “Many allegations raised by the U.S. against China might be overturned if they were actually heard in the U.S. court system, as a lot of allegations have been fabricated and based on inference.”


Taiwanese Scholars: Biden’s China-aiming Chip Act is Harming TSMC

On the 28th, Chintay Shih, former president of the Taiwan island’s Industrial Technology Research Institute, Burn Lin, former vice president of TSMC, and Chang-Tai Hsieh, Professor of Economics at the University of Chicago Booth School of Business, jointly published an article titled “How America’s CHIPS Act Hurts Taiwan.”

They unanimously believe that the global semiconductor industry was originally a scientifically specialized industrial chain, where each segment focused on its own expertise. This not only fosters technological advancements but also serves as a risk mitigation strategy.

However, under Joe Biden’s “Chip Act,” the subsidies provided by the United States may seem substantial, but they are insufficient to build another semiconductor ecosystem. In terms of chip manufacturing, specialized expertise and skilled workers are crucial. While the United States excels in chip design, it lacks the willingness or technology for chip manufacturing. TSMC’s factories in the United States suffer from a shortage of workers, resulting in production costs being 50% higher than those on the Taiwan island.

Meanwhile, the United States is promoting semiconductor manufacturing localization through the Chip Act. The U.S. Department of Commerce plans to provide Intel with a $10 billion subsidy, while TSMC not only receives a significantly smaller subsidy compared to Intel but may also face delays in receiving the funds. In light of this comparison, many Taiwanese believe that the United States is attempting to gain control over TSMC’s technology through the Chip Act.


Beijing Wins Bid for 2027 World Athletics Championships

In the early hours of February 29th Beijing time, the World Athletics held its 234th Council meeting in Glasgow, United Kingdom, where it was decided that the 2027 World Athletics Championships will be held in Beijing.
This event marks Beijing’s second hosting of the championships after a 12-year hiatus following the 2015 edition. World Athletics President Sebastian Coe congratulated Beijing on securing the rights to host the 2027 championships. ‘China is one of the largest sports consumer markets in the world, and the World Athletics Diamond League season in 2023 garnered a total of 368.9 million television viewers in China,’ said Sebastian Coe. ‘For World Athletics, these figures indicate a prime opportunity to develop the sport of athletics and expand the base of athletics enthusiasts in China.’
Wang Nan, Vice President of the Chinese Athletics Association and a Council Member of World Athletics, thanked World Athletics for its trust and recognition of Beijing. Wang Nan stated that the Chinese Athletics Association will work hand in hand with the Beijing Championships Organizing Committee to ensure the 2027 World Athletics Championships in Beijing are held to the highest standards, striving to present a perfect edition of the championships and contribute more to the development of athletics worldwide.

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