Taiwan has formally imposed export restrictions on Chinese tech giants Huawei Technologies Co and Semiconductor Manufacturing International Corp (SMIC), significantly escalating regulatory pressure on two companies central to China’s ambitions in artificial intelligence chip development.
The restrictions were outlined in an updated version of Taiwan’s strategic high-tech commodities entity list, published quietly on the website of the International Trade Administration. The list now includes Huawei, SMIC and a number of their subsidiaries, marking a notable policy shift by Taipei. Until now, Taiwanese authorities had refrained from targeting specific Chinese firms despite existing limitations on certain semiconductor technologies.
Under the current regulatory framework, Taiwanese companies must obtain government approval before exporting any goods or technologies to entities listed. This move is expected to partially sever Huawei and SMIC’s access to critical materials, construction technologies and equipment required for building advanced AI semiconductor fabrication plants — similar to those produced by Taiwan Semiconductor Manufacturing Co (TSMC) for global leaders such as Nvidia Corp.
In addition to the parent companies, several of Huawei’s overseas units located in Japan, Russia and Germany were also included in the latest update. Neither Huawei nor SMIC provided comment in response to media queries made outside regular business hours.
The decision comes against the backdrop of growing geopolitical tensions and trade restrictions that have reshaped the global semiconductor landscape. Huawei and SMIC, both already subject to export limitations by the United States, have been at the centre of China’s push to reduce reliance on foreign chip technology.
In 2023, Bloomberg News revealed that a number of Taiwanese firms were discreetly involved in supporting Huawei’s efforts to construct a network of chip plants in southern China. The latest Taiwanese restrictions are expected to hinder those developments.
TSMC, which supplies key clients such as Apple Inc and Nvidia, halted shipments to Huawei in 2020 following US-imposed export restrictions. Despite facing numerous curbs, Huawei and SMIC attracted international attention last year when they unveiled a domestically produced seven-nanometre chip, a move that surprised many in Washington.
The restrictions coincide with rising cross-strait tensions. Earlier this year, newly inaugurated Taiwanese President Lai Ching-te referred to China as a “foreign hostile force” and introduced new countermeasures aimed at curbing external interference. Beijing, which claims Taiwan as part of its territory, has reiterated its intent to unify with the self-governing island — by force if necessary.
-Bloomberg
