Taiwan adds Huawei to a list which includes Taliban, al-Qaeda
What's the story
Taiwan has added China's tech giants Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list. The step comes amid concerns over tech theft and increasing US pressure. The inclusion means Taiwanese companies will now require government approval before exporting any products to these firms. This is part of Taiwan's efforts to protect its chip industry and national security.
Export restrictions
Major step by Taiwan
The inclusion of Huawei and SMIC on the Ministry of Economic Affairs (MOEA) trade administration's strategic high-tech commodities entity list is a major step. The list already includes other proscribed organizations such as the Taliban and al-Qaeda.
Chip production
Taiwan already has strict chip export controls
Taiwan is home to TSMC, the world's largest contract chipmaker and also a major supplier of chips to AI giant NVIDIA. Both Huawei and SMIC have been trying hard to catch up in the chip technology race. To note, Taiwan already has strict chip export controls on Taiwanese firms either manufacturing in the country or supplying to Chinese entities.
Trade barriers
Huawei at the center of China's AI ambitions
Huawei is at the center of China's AI ambitions but is on a US Commerce Department trade list that essentially bars it from getting US goods and technology. This also includes foreign-made products such as chips from firms like TSMC that are made with US technology. Last October, TechInsights, a Canadian tech research firm, found a TSMC chip in Huawei's 910B AI processor.
Shipment suspension
US ordered TSMC to halt shipments to China
In November 2024, the US Commerce Department ordered TSMC to pause shipments of more chips to Chinese customers. This came after a similar action was taken against China-based chip designer Sophgo, whose chip matched the one in Huawei's 910B.