UMC stops R&D activity with Chinese firm after it was banned from buying U.S. products on national security grounds
Taiwan News
Date: 2018/11/01
By: Scott Morgan, Taiwan News, Staff Writer
TAIPEI (Taiwan News) – Taiwan’s second-largest contract chipmaker United
(Image from UMC’s webste)
Microelectronics Corp. (UMC, 聯華電子) has frozen its dealings with Chinese state-owned semiconductor firm Fujian Jinhua Integrated Circuit Co., after the company was sanctioned by the U.S. government on national security grounds.
UMC said in a statement on Oct. 31 that they will halt all research and development activities with the Chinese state-owned company “until we are cleared to resume by the appropriate authorities.”
The U.S. Department of Commerce added Fujian Jinhua Integrated Circuit Co. to a list of entities that cannot buy intermediate goods, software, or other technology from U.S. firms, citing national security grounds.
Fujian Jinhua Integrated Circuit Co. “poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States,” the U.S. Department of Commerce said in a statement.
