A major Taiwanese chip designer has suspended business with Phytium Technology after Washington blacklisted the Chinese company over alleged military links, underscoring how global companies continue to be caught up in the US-China tech war, reported the Nikkei Asia.
Taipei-listed Alchip Technologies provided chip design services and intellectual property to Phytium and helped it outsource chip production to Taiwan Semiconductor Manufacturing Co., the world’s biggest contract chipmaker. Phytium develops central processing units for use in supercomputers as well as personal computing devices and is one of the companies at the heart of China’s campaign to boost its self-reliance on critical chip components.
“This is the first time a client of ours has been added to the Entity List,” Alchip CEO and President Johnny Shen told investors on Tuesday, referring to Washington’s trade blacklist. “All of our business with Phytium … including chip production with [TSMC], has been put on hold,” reported the Nikkei.
“I must admit that Alchip is facing a very big challenge,” he added.