Taiwan has announced an export ban affecting Chinese companies, including Huawei and SMIC, limiting their access to important chips.
Export Ban
Taiwan has blacklisted Huawei Technologies and Semiconductor Manufacturing International Corp. (SMIC), restricting their access to critical chip-building technologies. Under the new rules, both companies and their subsidiaries in Russia, Japan, and Germany must obtain government approval for any exports from Taiwanese companies.
Geopolitical Conflicts
In early 2025, Taiwan's President Lai Ching-te referred to China as a 'foreign hostile force.' His administration has launched a suite of measures aimed at countering Beijing's infiltration tactics and political influence operations on the island. China consistently asserts that Taiwan is part of its sovereign territory.
Industry Impact
The restriction on access to foreign equipment and materials may undermine Huawei and SMIC's efforts to develop their own chips. Taiwan's Semiconductor Manufacturing Co. (TSMC) ceased business with Huawei in 2020 in compliance with U.S. export restrictions. Analysts have expressed doubts about the scalability and efficiency of chips fully produced in China that the companies unveiled in 2023.
The export ban complicates the further development of Chinese AI companies and underscores the escalating geopolitical tensions in the region.
