Taiwan Blacklists Huawei and SMIC in Strategic Tech Move
Taiwan has officially blacklisted Chinese tech giants Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (SMIC), a move that could significantly hinder China’s ambitions in advanced AI chip technology. According to an update from Taiwan’s International Trade Administration, these companies and several of their subsidiaries have been added to the strategic high-tech commodities entity list, effective June 14. This initiative mandates that Taiwanese firms must secure government approval before exporting to these listed entities.
This decision echoes previous actions taken by the United States, which has also designated Huawei as a national security threat. In June 2020, the FCC restricted U.S. funding for these companies, reinforcing their exclusion from significant markets and technologies. The implications of Taiwan’s move further complicate Huawei and SMIC’s access to critical technologies and materials necessary for semiconductor production, especially since they rely on resources from Taiwan Semiconductor Manufacturing Co. (TSMC).
Reports suggest that relations between Taiwan and China are deteriorating, with Taiwanese President Lai Ching-te labeling China a “foreign hostile force.” The recent blacklist could derail ongoing efforts for Taiwanese firms to covertly assist Huawei in expanding its chip manufacturing capabilities in southern China.
While limitations on exporting essential chip-making equipment to China have been in place, this is the first time specific firms have faced targeted restrictions. Despite global sanctions, Huawei and SMIC recently showcased a 7-nanometer chip developed in China, indicating they remain key players in China’s semiconductor landscape.
As tensions mount, the ramifications of Taiwan’s updated policy could reshape the landscape for high-tech competition in Asia, though Beijing has yet to respond officially.
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