TAIPEI, Taiwan — The Commerce Ministry of Taiwan has placed prominent Chinese chip manufacturers, Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC), onto its list of export controls. This move signals escalating tensions in the realm of trade and technology between Taiwan, China, and the United States.
Being added to the “strategic high-tech commodities” list indicates that Taiwanese enterprises are now obligated to obtain export permits before they can sell products to these specified companies. This list also includes various organizations and firms from China, Iran, and other areas, as well as groups like the Taliban and al-Qaeda.
The export control list saw its latest update on Sunday. Initially, neither Huawei nor SMIC commented on their recent inclusion. Both corporations have already faced sanctions in the United States. As they strive to produce China’s most sophisticated indigenous artificial intelligence chips, Huawei and SMIC aim to challenge U.S.-based Nvidia’s dominance and support Chinese tech industries despite existing export limitations.
Taiwan is renowned for hosting the world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier for Nvidia. In line with broader measures to limit China’s access to state-of-the-art technologies, last November, the U.S. mandated TSMC to halt the supply of specific advanced chips to Chinese clientele.
While Taiwan operates autonomously, China maintains its claim over the island, declaring the right to annex it by force if deemed necessary. Meanwhile, the United States serves as Taiwan’s predominant unofficial ally and principal arms supplier.