Two bus operators found to be using buses with China-made chips are to demand that the original manufacturers replace the systems and provide compensation for breach of contract, the Veterans Affairs Council said yesterday.
Democratic Progressive Party Legislator Michelle Lin (林楚茵) yesterday said that Da Nan Bus Co and Shin-Shin Bus Co Ltd have fielded a total of 82 buses that are using Chinese chips.
The bus models were made by Tron-E, while the systems provider was CYE Electronics, Lin said.
Photo courtesy of Democratic Progressive Party Legislator Michelle Lin
Lin alleged that the buses were using chips manufactured by Huawei subsidiary HiSilicon Co, which presents a national security risk if the chips were used to power the around view monitor systems in modern vehicles, and relay imagery or videos of surrounding pedestrians, cars and scenery to Chinese servers.
It also appears as though the manufacturer attempted to scratch the HiSilicon logo off the chips to hide their origin, she said.
The council, when first contacted for information on Tuesday, said that the chips were manufactured in Taiwan or the Netherlands, Lin said.
It only admitted on Wednesday, when she forwarded pictures, that Tron-E has been using Chinese chips since last year, she added.
Lin said that HiSilicon products have been listed in international warnings about Chinese products containing “back doors” that could transmit information to China.
Tron-E has ignored a signed pledge not to use Chinese products, she said, calling on the council to closely monitor the replacement procedures for all 82 buses.
Lin also called for Tron-E to be banned, and the details forwarded to the Ministry of Economic Affairs and the Ministry of Transportation and Communications.
Council Minister Yen De-fa (嚴德發) during a committee meeting at the Legislative Yuan affirmed that, as per contractual obligations, all companies are banned from using Chinese products.
The agency has established a task force to investigate the issue, he said, adding that the bus operators would seek compensation and have already demanded that the manufacturer replace the chips with ones that meet regulations.
Of the 244 electric buses operated by the two companies, 82 were found to contain the chips, with 61 operated by Shin-Shin Bus and 21 by Da Nan Bus, he said.
Despite the brand and model being approved under the Government Procurement Act (政府採購法), it was unfortunate that the companies found ways around their contractual obligations, he said.
The companies discovered the issue after conducting spot checks, the council said, adding that they have been asked to report the matter to the transport ministry and the Taipei Public Transportation Office.
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