In a major development that appears to dovetail with U.S. technology controls, Taiwan’s Ministry of Economic Affairs (MOEA) has said that the island’s updated Strategic High-Tech Commodities (SHTC) Export Control Entity list now includes Chinese tech giants Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (SMIC).
Under the new measure announced today, Taiwanese firms will be required to seek permission from the government if they want to export any items that could be used in “sensitive technologies, material or equipment” to the blacklisted entities.
The addition of Huawei and SMIC and their overseas units to Taiwan’s export control list is regarded as a formal closing of remaining loopholes and a strengthening of Taiwan’s role as a pivotal player in the intensifying global tech competition.
Both companies were among 601 new foreign entities on the list, cited for arms proliferation activities and other national security concerns. Notably, the list also names groups such as the Taliban and al-Qaeda.
The strategic move of Taipei will be a big blow to China’s dreams of developing AI chips. Huawei and SMIC have been at the vanguard of Beijing’s drive for self-reliance in advanced semiconductors, at a time when they have been met with broad U.S. export restrictions.
By denying successful transfer of critical Taiwanese plant construction technologies and semiconductor equipment, Taiwan directly intends to hold up China’s development in this vital sector.
The move follows heightened attention after reports last October that a TSMC-made chip was discovered in one of Huawei’s AI training cards.
Although Taiwan Semiconductor Manufacturing Co. (TSMC) had stopped shipping supplies to Huawei in 2020 after the Trump administration imposed sanctions on the firm, the discovery raised more questions and highlighted the challenges of supply chains.
Taiwan’s International Trade Administration said in June that the entity list is reviewed and revised on a regular basis in accordance with the Foreign Trade Act, citing the sanction and control lists of the UN Security Council and like-minded countries.
The move underscores Taiwan’s increasing determination to protect its advanced chipmaking sector – and its national security interests – in the face of changing geopolitical factors.