Taiwan has added Huawei and SMIC to its Strategic High-Tech Commodities Export Control List, a move that now requires Taiwanese companies to obtain special approval before shipping any advanced technologies to these Chinese firms. This decision, implemented on June 10, marks a significant alignment with U.S. efforts to curb China’s semiconductor and AI capabilities.
The Ministry of Economic Affairs in Taipei cited concerns over national security, arms proliferation, and the protection of critical R&D assets. The newly imposed restrictions cover equipment, materials, and even technical knowledge related to semiconductor production. Huawei and SMIC are now part of a broader list that includes over 600 restricted entities across nations like China, Russia, Iran, and Pakistan.
This action follows reports that Huawei had used intermediary entities to bypass earlier controls and secure chip manufacturing from TSMC, resulting in the production of about two million advanced AI chiplets. By closing these loopholes, Taiwan is moving to prevent unauthorized access to its cutting-edge technologies and talent, especially amid allegations of Chinese firms poaching local engineers.
Beyond economic implications, this reflects a broader geopolitical stance. Taiwan is reinforcing its so-called “Silicon Shield” by securing its critical industries and technology know-how. The restrictions also send a strong message to Beijing about the island’s resolve to protect its semiconductor leadership and maintain tighter control over the global supply chain in the face of growing regional tensions.
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