Taiwan has added Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC) to its trade blacklist, in a move that further aligns the island’s chip policy with US-led export controls targeting Beijing’s semiconductor ambitions.
The updated Strategic High-Tech Commodities Entity List, published Saturday by Taiwan’s Ministry of Economic Affairs, includes Huawei, SMIC, and several of their subsidiaries. The listing prohibits these firms from sourcing key chip technologies and services from Taiwanese companies.
The decision marks another step in tightening cross-strait tech ties and reflects rising pressure from Washington to ensure that Taiwanese semiconductor expertise does not indirectly aid Chinese firms under sanctions.
Huawei and SMIC, both already sanctioned by the United States, are considered China’s best hopes in developing advanced chips domestically.
Their collaboration resulted in a 7-nanometre chip powering Huawei’s Mate 60 smartphone series in 2023 — a development that raised questions in Washington over the effectiveness of existing restrictions.
“The new rule from Taipei is more of an effort to further tighten the screws on control measures led by Washington,” said Ray Wang, a Washington-based semiconductor analyst. He noted that both firms were already facing severe operational limits and the blacklist may not cause immediate disruption.
Still, the move is significant. It follows a series of US actions aimed at halting China’s access to high-performance computing components. The US Commerce Department had earlier urged Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, to cut off advanced services for mainland clients.
A Reuters report also revealed that TSMC faced a potential $1 billion penalty after a Huawei AI chip was traced back to its foundries.
Taiwan’s decision adds to Beijing’s concerns as it strives to achieve self-reliance in semiconductors. The mainland government continues to view self-ruled Taiwan as a part of China and has not ruled out reunification by force.
The United States, while recognising the “One China” policy, opposes any coercive actions and maintains defence ties with Taipei. On the other hand, Taiwan too has historically claimed sovereignty over all of China, including the mainland.
Neither Huawei nor SMIC responded to requests for comment as of Sunday.
The blacklist comes amid a broader reassessment of chip supply chains and geopolitical exposure. With Taiwan at the centre of global semiconductor production, its alignment with Western sanctions may further restrict Chinese tech growth.
