Taiwan adds Huawei, SMIC to export control list amid escalating tensions

Taiwan’s Ministry of Economic Affairs placed Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corp. (OTCQX:SIUIF) on its list of restricted export recipients, signaling deepening trade and technology rifts involving Taipei, Beijing and Washington, The Associated Press reported.

The updated list, revised on Sunday, includes entities considered part of the “strategic high-tech commodities” category. Taiwanese firms must now apply for special licenses before exporting certain goods to the newly added companies. Others on the list include designated groups such as al-Qaeda and the Taliban, along with a range of organizations and firms from China, Iran and additional regions.

Huawei and SMIC, both previously sanctioned by the United States, have yet to issue public statements regarding their addition to the Taiwanese export control registry.

Both companies play key roles in China’s effort to develop domestic alternatives to U.S. semiconductor technology. In particular, they are producing China’s most advanced AI chips, aiming to challenge market leader Nvidia and support local tech firms struggling with ongoing U.S. export restrictions.

Taiwan itself is a global semiconductor powerhouse, home to Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) (OTC:TSMWF), the world’s biggest contract chipmaker and a major supplier to Nvidia. In late 2023, the U.S. instructed TSMC to stop delivering certain high-end chips to Chinese firms, further tightening restrictions on China’s access to cutting-edge semiconductors.

The developments come amid ongoing geopolitical strain. China continues to assert its claim over self-governed Taiwan, while the United States remains the island’s most important informal partner and its leading supplier of defense equipment.