Taiwan Tightens Tech Clampdown on Huawei and SMIC

Taiwan has taken a decisive step in the ongoing tech cold war with China, adding Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list — a move that signals rising tensions in the global semiconductor battle.

The announcement, quietly made late Saturday via an update to Taiwan’s Ministry of Economic Affairs website, places the two Chinese tech heavyweights on a list typically reserved for sanctioned entities like the Taliban and al Qaeda. The inclusion means any Taiwanese company seeking to export high-tech products to Huawei or SMIC will now require special government approval, effectively tightening the already limited technology pipeline between the island and mainland China.

A New Barrier for China’s Chip Ambitions

This decision lands squarely in the middle of a geopolitical and technological rivalry that has escalated in recent years. Taiwan, home to TSMC (Taiwan Semiconductor Manufacturing Co.), the world’s largest and most advanced contract chipmaker, plays a pivotal role in the global tech supply chain — particularly for cutting-edge semiconductors used in AI applications, smartphones, and advanced computing systems.

Both Huawei and SMIC have been scrambling to lessen their reliance on foreign technology, especially in the wake of intensifying U.S. export restrictions. Huawei, a central player in China’s AI strategy, remains blacklisted by the U.S. Commerce Department, preventing it from accessing American technology and any foreign products containing U.S.-origin components — a category that includes many of TSMC’s chips.

Past Incidents Stirring Present Tensions

The move by Taiwan follows a notable incident last October when Canadian tech analysis firm TechInsights disassembled Huawei’s 910B AI processor and uncovered a TSMC-made chip inside — a surprising revelation considering the existing export controls. The 910B is considered the most sophisticated AI accelerator ever mass-produced by a Chinese firm, making its TSMC connection particularly alarming for Washington and Taipei.

In response, TSMC suspended shipments to Sophgo, a Chinese chip designer whose product mirrored the 910B. The U.S. Commerce Department further escalated restrictions in November by instructing TSMC to stop supplying certain chips to Chinese customers, intensifying pressure on China’s domestic semiconductor development.

Protecting Taiwan’s Chip Industry

Taiwanese authorities have consistently accused Chinese companies — including SMIC — of attempting to steal sensitive semiconductor technology and poach skilled engineers from the island. Such actions have only deepened mistrust and triggered stricter oversight from Taipei.

For its part, SMIC, China’s largest chipmaker, has aggressively expanded its production capacity in recent years, seeking to fortify China’s semiconductor self-sufficiency amid mounting U.S. and allied export restrictions. The company, often seen as a bellwether of China’s chip ambitions, now finds itself facing additional hurdles as Taiwan tightens its grip on critical technology flows.

A Move With Global Ripples

While neither Huawei, SMIC, nor Taiwan’s economic ministry offered immediate comment over the weekend, the implications of this policy shift are clear. By further restricting access to Taiwan’s advanced chip technology, Taipei is reaffirming its alignment with broader U.S.-led efforts to contain China’s technological rise — especially in sensitive sectors like AI, defense, and high-performance computing.