Taiwan has added Chinese tech powerhouses Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC) to its trade blacklist, signaling a stronger alignment with US-led restrictions aimed at curbing China’s semiconductor advancement.
Announced on Saturday by Taiwan’s Ministry of Economic Affairs, the revised Strategic High-Tech Commodities Entity List now includes Huawei, SMIC, and several of their affiliates. This move bans Taiwanese companies from supplying these entities with crucial chip technologies and services.
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This development marks a significant tightening of technology ties across the Taiwan Strait, as Taipei comes under growing pressure from Washington to ensure that its world-class chip expertise does not indirectly support Chinese firms already under US sanctions.
Huawei and SMIC, both sanctioned by the US, are central to China’s efforts to build a self-reliant chip industry. In 2023, the two collaborated to develop a 7-nanometre chip used in Huawei’s Mate 60 smartphone, raising concerns in the US about loopholes in current export controls.
Ray Wang, a semiconductor analyst based in Washington, stated, “Taiwan’s new rule appears to be part of a broader effort to reinforce US-led export controls. Although Huawei and SMIC are already heavily restricted, this step adds another layer of pressure.”
The decision follows a series of US efforts to cut China off from high-performance chip components. The US Commerce Department previously urged Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s leading chipmaker — to halt advanced services for mainland Chinese clients.
A Reuters investigation had also revealed that TSMC faced a possible $1 billion fine after one of Huawei’s AI chips was traced back to its facilities.
Taiwan’s latest move further complicates Beijing’s ambition to achieve semiconductor independence. China views Taiwan as a breakaway province, with unification — even by force — not ruled out. Conversely, while the US acknowledges the “One China” policy, it firmly opposes any use of force and maintains defense support for Taiwan.
Adding to the geopolitical complexity, Taiwan itself has historically claimed sovereignty over all of China, including the mainland.
Neither Huawei nor SMIC responded to requests for comment as of Sunday.
This blacklist update comes amid a global reevaluation of semiconductor supply chains and geopolitical risks. As Taiwan remains a pivotal player in chip manufacturing, its closer alignment with Western export controls is likely to tighten the squeeze on China’s tech ambitions.
