Taiwan Adds Huawei, SMIC to Export Control List Amid Tensions
Taiwan has added Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list, escalating its response to growing concerns over national security and technology proliferation.
The inclusion of these companies on Taiwan's Strategic High-Tech Commodities Entity List means that Taiwanese companies must now seek government approval before exporting products to them. This move comes amid heightened scrutiny of Chinese firms, particularly those involved in China's artificial intelligence (AI) and semiconductor sectors.
A Shift in Taiwan’s Export Policy
The updated export control list, announced on June 10, identifies 601 entities, including Huawei and SMIC, from countries such as China, Russia, Pakistan, Iran, and Myanmar.
The trade administration cited national security concerns and efforts to prevent arms proliferation as key reasons for the update. Taiwanese manufacturers, including Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, will be required to adhere to these new regulations, ensuring they carefully assess transaction risks before supplying products to these proscribed entities.
The Significance for Global Semiconductor and AI Markets
Both Huawei and SMIC are central players in China’s push to enhance its semiconductor and AI capabilities, areas critical to its technological aspirations. However, both companies have faced considerable hurdles due to export restrictions, particularly from the United States.
The US has barred Huawei from receiving critical technology, including chips, from American firms, as part of broader efforts to limit China’s tech expansion.
The latest export control by Taiwan adds another layer of complexity to Huawei and SMIC’s operations, further isolating them from the global supply chain.
Also read: NVIDIA and Foxconn to Build Taiwan's AI Factory Supercomputer
Taiwan's Stance on Technology Security
Taiwan’s restrictions on Huawei and SMIC aim to protect its semiconductor edge amid concerns over IP theft and talent poaching. With pressure from the US and growing scrutiny of Chinese firms, Taiwan is tightening controls as SMIC ramps up domestic chipmaking. The discovery of a TSMC chip in Huawei’s AI processor highlights the complex global tech supply chain and escalating tech tensions.
Taiwan’s export restrictions on Huawei and SMIC reflect growing global efforts to limit China’s access to advanced technology over national security concerns. As a key player in the semiconductor supply chain, Taiwan joins the US and allies in curbing tech that could boost China’s AI and defense capabilities. The move highlights Taiwan’s role in addressing risks posed by Chinese tech firms, even as those companies continue advancing in critical sectors.
