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Taiwan Cyber Unit Unfazed by China’s Bounty Threat on Alleged Hackers

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Taiwan’s cyber defense forces have vowed not to be intimidated by China’s offer of monetary rewards for the arrest of 20 individuals Beijing claims are Taiwanese military hackers, the island’s defense ministry said on Wednesday. Taiwan emphasized that China’s legal system holds no jurisdiction over the democratically governed island.

The controversy escalated last week when China’s Guangzhou Public Security Bureau named and published photos, names, and identity card numbers of the alleged hackers linked to Taiwan’s Information, Communications and Electronic Force Command, offering rewards exceeding $1,000 for their capture. Beijing’s Taiwan Affairs Office warned that it would “pursue the matter to the end” and would not show leniency.

In response, Taiwan’s defense ministry condemned China for spreading false narratives and using “cross-border rewards” as part of what it called a disinformation campaign to weaken military morale. Taiwan’s constitution affirms that Chinese laws have no binding authority on the island or its people.

“The officers and soldiers of the Information, Communications and Electronic Force Command will remain steadfast,” the ministry said, “defending the digital frontier and ensuring national security through solid information defense.”

Taiwan has frequently accused China of extensive cyberattacks and disinformation campaigns aimed at undermining public trust in Taiwan’s government, amid increasing military and political pressure from Beijing.

Synopsys Resumes Limited Services in China Amid U.S. Export Restrictions, Core Tool Sales Still Blocked

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Synopsys has partially resumed some services in China after suspending operations earlier this month in response to new U.S. export curbs, according to a source with direct knowledge of the situation. The California-based semiconductor design software provider had halted sales and access to its SolvNet customer support portal to comply with broad U.S. restrictions aimed at limiting technology exports to China.

The source revealed that while Synopsys has restarted sales of non-core hardware and intellectual property (IP) to serve some existing Chinese clients, sales of critical Electronic Design Automation (EDA) tools remain suspended. These essential EDA tools are necessary to fully utilize the company’s IP and hardware products, such as the HAPS and ZeBu hardware-assisted verification systems, which are primarily used for accelerating chip verification.

SolvNet has reopened with limited access, restricting some software-related documents, further impacting Chinese customers’ ability to use Synopsys’ full range of services.

Synopsys, along with Cadence and Siemens EDA, dominates the global EDA market with over 70% market share in China, according to the Chinese state news agency Xinhua. The ongoing restrictions on EDA tool sales pose a significant challenge to Chinese semiconductor design companies, potentially hindering the country’s chipmaking industry.

Following the U.S. export controls, Synopsys suspended its annual and quarterly revenue forecasts, reflecting uncertainty about future sales prospects in China.

The company did not immediately respond to requests for comment.

Trump AI Czar Downplays Risk of AI Chip Smuggling, Warns Against Overregulation

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David Sacks, the White House AI czar under former President Donald Trump, on Tuesday minimized concerns about American AI chips being smuggled to adversaries, emphasizing the physical size and security of such equipment. Speaking at the AWS summit in Washington, Sacks explained that AI chips are housed in massive server racks weighing two tons, making clandestine smuggling highly unlikely.

Sacks expressed worries that stringent U.S. AI regulations could hinder innovation and growth, potentially ceding the global AI market to China. “We talk about these chips like they could be smuggled in the back of a briefcase. That’s not what they look like,” he said. He criticized efforts by state legislatures to regulate AI and permitting obstacles for data center construction.

Contrasting with President Joe Biden’s policies, which focused on curbing chip exports to China and addressing risks of AI misuse, the Trump administration revoked several Biden-era executive orders aimed at controlling AI diffusion and competition. Sacks argued that the Biden restrictions risk pushing countries like the United Arab Emirates closer to China, citing a recent U.S.-UAE plan to build a major AI campus abroad.

“We rescinded that Biden diffusion rule, which…made diffusion a bad word. Diffusion of our technology should be a good word,” Sacks said.

He warned that if AI chips made by Chinese giant Huawei become widespread globally within five years, it would signify a strategic loss for the U.S. Highlighting the rapid pace of Chinese AI development, Sacks stated, “China is not years and years behind us in AI. Maybe they’re three to six months.” The White House later clarified that Chinese AI chips lag one to two years behind U.S. technology, while their AI models are closer in capability.