Taiwan has added Chinese tech giants Huawei and SMIC to a list of companies now subject to strict export controls. This decision means Taiwanese businesses will need official approval before supplying either company with advanced technology, equipment, or materials. The move, announced by Taiwan’s International Trade Administration on 10 June, affects over 600 entities across China, Russia, Iran, Myanmar, and Pakistan. It is part of a broader push to tighten restrictions on the transfer of high-tech goods that could threaten national security or aid military development.
Huawei and SMIC, both central to China’s ambition to lead in AI and semiconductor development, may now face serious setbacks. Taiwan is a major hub for the global semiconductor industry, and access to its tools, expertise, and materials is vital for any company building advanced chips. With this restriction in place, Huawei and SMIC could find it harder to expand their AI capabilities or develop cutting-edge processors, especially in the face of other global sanctions already limiting their partnerships with leading Western suppliers.
The move also strengthens ongoing efforts by the United States and its allies to slow China’s advancement in sensitive tech sectors. Since 2020, the US has pressured its partners to adopt similar restrictions, with Taiwan previously limiting exports to China in line with American sanctions. This updated list now directly targets two of China’s most prominent tech firms, signalling deeper cooperation between Taiwan and Western powers in regulating high-risk technology flows.
Taiwanese officials have played down the economic impact on local businesses, suggesting that most had already halted shipments to these companies following earlier US sanctions. However, the decision could still reshape parts of the tech supply chain. It may push China to accelerate the development of its domestic chip industry or turn to alternative suppliers within Asia. Industry analysts note that while the short-term disruption may be manageable, the long-term outcome will depend on how effectively China can build its ecosystem without Taiwanese support.
In the bigger picture, Taiwan’s move reflects growing global concern about who controls the future of artificial intelligence and semiconductor technology. As geopolitical tensions continue to rise, national governments are becoming more cautious about where their most advanced tools end up. For Huawei and SMIC, the restrictions present yet another challenge in a world where access to critical tech is increasingly politicised and closely guarded.
