Taiwan has placed China’s tech giants Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) on its updated export control list, in a move aimed at safeguarding national security and preventing arms proliferation. The inclusion means Taiwanese firms must now seek government approval before conducting any form of export business with the two companies, both of which are central to China’s ambitions in chipmaking and artificial intelligence.
The revised list, published by Taiwan’s Ministry of Economic Affairs on June 10, added 601 entities in total, including organisations from China, Russia, Iran, Myanmar, and Pakistan. The ministry stressed that the decision was made after a security review and warned manufacturers to comply with the new regulations, verify transactions diligently, and assess risks involved in business dealings. The export control list already features groups like the Taliban and al Qaeda, placing Huawei and SMIC in a controversial category.
Taiwan remains a critical player in the global semiconductor industry, largely due to the dominance of Taiwan Semiconductor Manufacturing Company (TSMC), which supplies leading tech firms including Nvidia. The island has long maintained strict controls on chip exports, especially to China, as geopolitical tensions deepen over allegations of tech espionage and talent poaching. Last year, evidence emerged of a TSMC chip inside Huawei’s 910B AI processor, prompting tighter scrutiny and restrictions from both Taiwan and the U.S.
The new restrictions come amid increasing concerns over China’s push to achieve semiconductor self-sufficiency. SMIC, the largest chipmaker in China, has been ramping up investments to close the gap with global leaders. However, Taiwan’s government has pledged to counter any Chinese effort to acquire chipmaking expertise through illicit means, further intensifying the tech war between Beijing, Taipei, and Washington.