Amid escalating technological and geopolitical tensions, Taiwan’s Ministry of Economic Affairs has placed two major Chinese semiconductor players—Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC)—on its export control list. The move adds another layer of complexity to the increasingly fraught tech rivalry involving Taiwan, China, and the United States.
The updated list, which was made public on Sunday, includes entities deemed strategic risks or associated with high-tech trade concerns. Taiwanese companies will now be required to obtain official export permits before engaging in any commercial transactions with Huawei or SMIC.
These controls are part of Taiwan’s regulatory framework governing “strategic high-tech commodities,” which applies to exports that may have military or advanced technological implications. Other entities on the list include organizations such as the Taliban, al-Qaeda, and companies in nations like Iran and North Korea.
Huawei and SMIC Caught in Cross-Strait and U.S. Tensions
Both Huawei and SMIC have previously been subjected to U.S. sanctions over national security concerns and their role in China’s technological advancement, particularly in areas related to artificial intelligence and semiconductor development. The companies have been working to produce China’s most advanced AI chips, seeking to reduce reliance on foreign technology providers like U.S.-based Nvidia.
Taiwan’s new restrictions come at a time when U.S. export controls have already limited China’s access to critical chipmaking tools and components. In November 2024, the U.S. directed Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s leading chipmaker—to halt the supply of advanced chips to certain Chinese clients, as part of Washington’s strategy to curb Beijing’s semiconductor ambitions.
Huawei and SMIC have yet to issue statements in response to their inclusion on the list.
Strategic Implications for Taiwan’s Global Role
Taiwan’s move reflects its strategic balancing act in a volatile regional and global environment. While it shares deep economic ties with China, the self-ruled island is also a critical ally of the United States—particularly in advanced technologies and defense.
TSMC, headquartered in Taiwan, remains a key supplier for U.S. tech companies, including Nvidia and Apple, and has been central to the global chip supply chain. The island’s decision to enforce tighter controls aligns with broader U.S.-led efforts to restrict China’s technological development in sensitive sectors.
Rising Regional Risks
The export control decision also underscores the deepening divisions between Taiwan and China. Beijing continues to assert sovereignty over Taiwan and has not ruled out the use of force to achieve reunification. Meanwhile, the U.S. maintains strong unofficial ties with Taiwan, including arms sales and diplomatic support, further aggravating tensions with China.
As technology becomes increasingly central to geopolitical influence, Taiwan’s regulatory and strategic choices are likely to continue drawing attention from all sides of the global tech standoff.