Taiwan Signaled that its Chip Companies will Comply with New U.S. Rules

The Economic Ministry of Taiwan made a statement Saturday in response to the U.S. announcement that Taiwanese companies are law-abiding. In addition to complying with domestic laws and regulations, it will also cooperate with the ordering needs of international customers and customer specifications in their countries. The Taiwanese pledge implies they will comply with new U.S. export controls aimed at hampering Communist Chinas chip industry.

New rules announced by the administration of U.S. President Joe Biden on Friday include a ban on Communist China using U.S. equipment to make chips anywhere in the world, greatly expanding U.S. influence in slowing Beijing’s technological and military advances.

Taiwan is a major chip production base and is home to Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is the worlds largest contract chipmaker and a major supplier to companies including Apple Inc. (AAPL.O).

Taiwans Economy Minister Wang Mei-hua will visit America next week to respond to what her office called ‘concerns’ about supply chain and geopolitical issues. She will visit American technology companies that are major customers of Taiwanese semiconductor companies.