Taiwan chip maker halts business with US-blacklisted Phytium

TAIPEI -- 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 U.S.-China tech war.

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.