Taiwan has added China’s Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list. This list already includes banned groups like the Taliban and Al-Qaeda. Taiwanese companies must now get government approval before exporting products to these companies. The update appeared on Taiwan’s Ministry of Economic Affairs website late Saturday.
Taiwan is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker and a major supplier of chips to companies like Nvidia. Huawei and SMIC have been working to catch up in the chip technology race.
Taiwan already enforces strict controls on chip exports. These rules apply to companies manufacturing in Taiwan or supplying Chinese firms. The new addition of Huawei and SMIC strengthens these controls. Taiwan’s government has vowed to stop Chinese companies from stealing technology and hiring away chip talent.
Huawei is central to China’s AI ambitions and is on the U.S. Commerce Department’s trade blacklist. This restricts Huawei from receiving U.S. goods or technology. It also blocks foreign-made goods like chips from TSMC if they involve U.S. technology.
In October, a Canadian research firm found a TSMC chip inside Huawei’s 910B AI processor, considered one of China’s most advanced AI chips. After this, TSMC suspended shipments to Sophgo, a China-based chip designer with a similar chip. The U.S. Commerce Department ordered TSMC in November to halt more shipments to Chinese customers.
SMIC, China’s largest chipmaker, has increased investments to expand production and improve China’s semiconductor capabilities amid U.S. export controls. Taiwan’s government sees SMIC as trying to acquire technology and talent from Taiwan.
Taiwan remains firm on its export rules to protect its technology and national security. China claims Taiwan as its territory, but Taiwan rejects this claim. The semiconductor industry is vital to Taiwan’s economy and global technology supply chains.
Adding Huawei and SMIC to Taiwan’s export control list may slow their access to Taiwanese technology. This could impact China’s AI and chip development plans. Taiwan and the U.S. continue working together to manage sensitive technology exports to China.
Taiwan’s export controls are part of a global effort to regulate the fast-growing chip industry. As worldwide demand for chips rises, control over technology becomes a key issue in global politics.
