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China Blames Taiwan for Cyberattack on Leading Semiconductor Firm

Deepika Rana / Updated: May 28, 2025, 02:56 IST
China Blames Taiwan for Cyberattack on Leading Semiconductor Firm

Tensions between China and Taiwan escalated further today as Beijing publicly accused Taipei of orchestrating a sophisticated cyberattack on a Chinese semiconductor manufacturer, intensifying concerns over cybersecurity and regional stability in East Asia.

The Ministry of State Security (MSS) in Beijing released a statement early Tuesday alleging that a group of hackers linked to Taiwan’s intelligence community breached the internal network of HuaTech Microsystems, a leading chipmaker based in Shenzhen. The attack, which reportedly took place in mid-May, was described by Chinese authorities as a “coordinated and deliberate act of cyber sabotage” aimed at extracting proprietary data related to advanced chip fabrication technologies.

“We have conclusive technical evidence that the cyberattack originated from Taiwanese IP addresses and was carried out using malware strains previously attributed to groups known to operate under the direction of Taiwan's military intelligence,” said MSS spokesperson Zhao Lijun during a press briefing.

The statement did not elaborate on the specific data believed to be compromised but indicated that the intrusion targeted trade secrets and advanced design blueprints from HuaTech’s 3nm fabrication process — technology considered critical to China's ambition to reduce reliance on foreign chip suppliers.

Taiwan’s Ministry of National Defense (MND) swiftly denied the allegations, calling them “groundless and politically motivated.”

“The Republic of China (Taiwan) strongly rejects these accusations. We neither support nor conduct cyber operations that target foreign civilian infrastructure. This is a baseless attempt to deflect from internal security failings,” said MND spokesperson Colonel Lee Chia-hung.

Experts believe the accusations reflect not only the increasing complexity of cross-strait relations but also the growing role of cyberwarfare in geopolitical disputes. China and Taiwan have long been locked in a diplomatic stalemate, with Beijing considering the self-governed island a breakaway province, while Taiwan asserts its de facto independence.

Cybersecurity analysts say the timing of the accusation may also relate to Taiwan’s recent signing of a joint defense technology pact with Japan and the United States, a move China views as provocative.

“We are seeing cyber operations becoming more embedded in statecraft. If true, this attack signals a shift toward espionage in the tech sector,” said Dr. Michael Zhang, a cybersecurity researcher at the University of Hong Kong. “But without independent verification, the political context must be considered.”

This is not the first time cyber allegations have marred China-Taiwan relations. In recent years, both sides have traded accusations of cyber intrusion, with China often claiming Taiwan-backed groups target key industries, while Taiwan accuses China of relentless cyber espionage against its government and infrastructure.

In response to the incident, China’s Ministry of Industry and Information Technology has reportedly launched a nationwide security audit across its semiconductor sector, instructing firms to bolster firewall defenses and monitor unusual data flows.

Meanwhile, international observers have urged restraint from both sides. “Escalating cyber accusations without transparent investigations could lead to broader instability in an already fragile region,” warned the Asia-Pacific Council on Cybersecurity Cooperation in a statement Tuesday afternoon.