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In a significant move aimed at safeguarding its semiconductor ecosystem, Taiwan has placed Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC) on its export control list. This action aligns the companies with previously restricted entities such as the Taliban and al Qaeda, signalling the gravity of Taiwan’s stance on national and technological security.

The updated list, maintained by Taiwan’s Ministry of Economic Affairs under its trade administration’s strategic high-tech commodities entity list, was released on Saturday, reported Reuters.

As a result, Taiwanese exporters will now be required to obtain prior government approval before supplying products or technologies to either company. This measure reflects Taiwan’s deepening efforts to restrict advanced tech flows into mainland China, particularly in sensitive sectors like semiconductors.

Huawei, SMIC Face Tightened Restrictions

The new restrictions come at a time when both Huawei and SMIC are striving to close the technological gap in semiconductor development. Huawei remains at the heart of China’s AI push but is already listed on the US Commerce Department list, which prohibits it from accessing most US technologies and goods. That includes chips produced overseas by companies like Taiwan’s TSMC, if US technology is involved.

Taiwan, home to global chipmaking leader TSMC—a key supplier to companies like Nvidia—has consistently enforced strict controls on chip exports to Chinese firms. The island’s government has also made it clear that it views Chinese efforts to recruit Taiwanese chip engineers and acquire sensitive know-how as a national security threat.

Past Incidents Fuel Current Measures

Last October, Canadian tech analysis firm TechInsights dismantled Huawei’s 910B AI chip and discovered components sourced from TSMC. The 910B is regarded as one of China’s most advanced AI accelerators. Following this revelation, TSMC halted shipments to Sophgo, a China-based chip company whose design matched the one found in Huawei's chip. Subsequently, the US Commerce Department directed TSMC to stop further chip deliveries to Chinese entities.

The Taiwanese government’s move is also rooted in growing concerns that Chinese chipmakers, particularly SMIC—China’s largest semiconductor firm—are ramping up domestic investments to reduce reliance on foreign technology. As the US continues to expand its export control regime, Taiwan is reinforcing its own barriers to prevent potential leakages of strategic technologies.