Taiwan has updated its strategic high-tech commodities export control list to include China’s Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC). This list, managed by the economy ministry’s trade administration, restricts exports of certain technologies and products to listed entities.
Taiwanese firms will now require government approval before exporting goods to these two major Chinese tech companies. The inclusion of Huawei and SMIC places them alongside notorious entities like the Taliban and al Qaeda, signaling the seriousness of Taiwan’s concerns.
Taiwan Expands Export Controls Amid Rising Global Tensions Over Tech and Security
The decision to expand the list was made following a review by Taiwan’s trade administration, which cited national security and anti-proliferation concerns. A total of 601 new entities were added, including companies from countries such as Russia, Pakistan, Iran, Myanmar, and China.
The trade administration emphasized that manufacturers must comply with regulations, verify their partners, and carefully evaluate the risks of transactions. This measure reflects a growing global trend of tightening technology controls, particularly in sensitive sectors like semiconductors and AI.
Taiwan Targets Huawei and SMIC in Sweeping Tech Export Crackdown Amid Security FearsTaiwan is a key player in the global semiconductor supply chain, home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. TSMC is a vital supplier to leading tech firms, including U.S.-based Nvidia.
Huawei and SMIC, both integral to China’s AI and semiconductor ambitions, have been racing to develop homegrown technology amid mounting international restrictions. Taiwan’s move adds another layer of complexity to China’s technological development plans and highlights the island’s strategic leverage in the semiconductor industry.
U.S. Restrictions and Taiwan Safeguards Highlight Rising Tensions in Chip Industry Race
Huawei has long been a target of U.S. trade restrictions, being on the U.S. Commerce Department’s Entity List, which severely limits its access to American technology and products made with U.S. tools. In 2023, TechInsights found that Huawei’s 910B AI chip included components made by TSMC, despite existing controls.
This discovery led TSMC to halt shipments to Sophgo, a chip designer connected to the 910B processor. The U.S. subsequently ordered TSMC to stop further shipments to Chinese firms, underscoring the global impact of semiconductor trade regulations.
Taiwan has repeatedly accused Chinese companies, including SMIC, of attempting to steal semiconductor technology and recruit top Taiwanese talent. As SMIC continues to invest in expanding its chip production capabilities, Taiwan’s government remains vigilant against what it views as threats to its technological edge and national security. The inclusion of Huawei and SMIC in its export control list is part of a broader strategy to protect Taiwan’s semiconductor dominance amid rising geopolitical tensions.
