Taiwan Adds Huawei, SMIC to Export Control List Amid Tech Security Concerns

Taiwan has placed Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) on its strategic high-tech commodities export control list. This move, announced via the economy ministry’s updated trade administration website, means Taiwanese firms must now obtain government approval before exporting products to either company. The list also includes groups such as the Taliban and al Qaeda.

Taiwan, home to global chip leader TSMC, already enforces strict export rules targeting Chinese firms amid growing concerns over technology transfer and national security. TSMC, a key supplier to companies like Nvidia (NASDAQ:NVDA), plays a central role in the global semiconductor supply chain. Both Huawei and SMIC have been accelerating efforts to close the technology gap with top-tier chipmakers, particularly in AI and advanced processing.

Huawei, central to China’s AI ambitions, remains blacklisted by the U.S. Commerce Department, preventing it from receiving American-made technologies and chips built using U.S. tools, including those from TSMC. A 2024 teardown of Huawei’s 910B AI processor by TechInsights revealed a TSMC-manufactured chip inside, raising compliance concerns. As a result, TSMC halted shipments to Chinese chip designer Sophgo, whose product resembled the one in the Huawei chip, following orders from the U.S. government.

Taiwan has repeatedly accused Chinese firms of attempting to steal semiconductor technologies and poach skilled engineers. The addition of SMIC to the export list underscores these concerns, as the company continues to boost domestic production to counter Western sanctions. Both SMIC and Huawei have yet to comment on their inclusion in Taiwan’s restricted entity list.

This development intensifies the already complex U.S.-China tech rivalry, with Taiwan caught in the crossfire as a critical node in the global chip ecosystem.