Taiwan escalated its semiconductor export restrictions by adding China’s Huawei Technologies and Semiconductor Manufacturing International Corp to a trade blacklist that places them alongside designated terrorist organizations and sanctioned states.
The move requires Taiwanese companies to obtain government approval before shipping products to the Chinese firms, effectively creating another bureaucratic hurdle for Beijing’s semiconductor ambitions. The action came as part of a broader update that added 601 entities to Taiwan’s Strategic High-Tech Commodities Entity List.
The timing appears deliberate. Recent reports revealed Huawei used shell companies to deceive Taiwan Semiconductor Manufacturing Co into producing over two million AI chip dies, circumventing existing US sanctions. TSMC now faces potential fines exceeding $1 billion for the violations.
Whether these restrictions will prove more effective than previous measures remains questionable. US officials estimate Huawei produces only around 200,000 Ascend AI chips annually, far below domestic demand, suggesting existing controls already constrain the company’s capabilities.
The restrictions align Taiwan more closely with Washington’s export control policies, though critics question whether such moves risk making the island overly dependent on US strategic priorities rather than serving its own economic interests.
