If you’re following the latest developments in global tech trade, you’ll want to know that Taiwan has just made a major move. On June 10, Taiwan’s International Trade Administration added Huawei, SMIC, and their subsidiaries to a list of restricted entities. This decision could seriously affect China’s ambitions to develop advanced artificial intelligence (AI) chips.
Taiwan’s updated list, including over 600 other entities, is part of its effort to stop arms proliferation and tackle broader national security concerns. The new restrictions mean Taiwanese companies must get government approval before sending high-tech goods or services to these firms.
Why this matters to chip development
You may already know that Taiwan is a global leader in semiconductors and advanced technology. So, when it introduces export controls, the impact is felt far and wide—especially by Chinese companies like Huawei and Semiconductor Manufacturing International Corporation (SMIC).
With Taiwan’s decision, Huawei and SMIC will find it harder to access crucial materials, construction tools, and equipment needed to build and expand their AI chip production. According to Bloomberg, this move could delay or stall China’s development of new-generation chips essential for advanced computing, AI training, and even military systems.
Huawei and SMIC are central to China’s push for self-reliance in semiconductor technology. However, China could face more roadblocks in meeting its chip production goals without direct access to Taiwan’s tech ecosystem, including its tools and materials.
What the Taiwanese government is saying
In a statement, Taiwan’s trade authority confirmed:
“On June 10, we added 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.”
The list doesn’t just target Chinese companies. It includes entities from several countries that Taiwan considers sensitive regarding global security. But for now, the most attention is on Huawei and SMIC, given their importance in the worldwide tech industry and China’s strategic plans.
You may recall that both Huawei and SMIC have already faced restrictions from other countries, including the United States. These new Taiwanese measures add another layer of difficulty, tightening the net around China’s high-tech ambitions.
Taiwan’s move will likely increase tensions between Beijing and Taipei, especially as the island plays an increasingly important role in the global semiconductor supply chain.
Looking ahead
If you’re watching the chip wars unfold, Taiwan’s latest move signals just how political and strategic the semiconductor industry has become. It’s not just about making gadgets anymore—it’s about national security, global alliances, and who controls the technology of the future.
So, whether you’re in business, tech, or politics, this is a story worth following. Taiwan’s restrictions could reshape supply chains, business strategies, and diplomatic relations in the coming months.
