Taiwan places export controls on Huawei and SMIC

Chinese Tech Companies Face Hurdles in Building AI Chips Due to Taiwanese Export Controls

Taiwanese export controls are posing challenges for Chinese tech giants Huawei and SMIC in accessing crucial resources required for developing AI chips. According to a report by Bloomberg, Taiwan’s International Trade Administration has added Huawei and SMIC, along with their subsidiaries, to a list of entities that are subject to restrictions on the export of strategic high-tech commodities.

This move implies that Taiwanese businesses now need government approval before they can supply any goods to Huawei and SMIC, limiting their access to essential plant construction technologies, materials, and equipment that are vital for the advancement of AI semiconductor technologies in China.

The trade administration stated, “On June 10, we added some 601 entities from Russia, Pakistan, Iran, Myanmar, and mainland China including Huawei and SMIC to the entity list to combat arms proliferation and address other national security concerns.” This decision highlights Taiwan’s efforts to safeguard its technological assets and prevent potential security risks associated with the transfer of advanced technologies to certain entities.