Taiwan Imposes Export Ban on China-Based AI Firms
Taiwan has implemented an export ban targeting AI companies based in China, effectively prohibiting Taiwanese firms from supplying key technologies essential to their operations. AI chips are increasingly regarded as the cornerstone of future global computing and defence sectors, and any disruption in their supply chain may prove critical to those seeking leadership in this field. With this move, Taiwan is positioning itself as a firm obstacle to China’s technological ambitions.
Export Restrictions Target Major Chinese Entities
The Taiwanese International Trade Administration has formally blacklisted Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (SMIC), restricting their access to crucial chipmaking technologies. Under the updated framework, both firms—along with several affiliated entities operating in Russia, Japan, and Germany—have been added to the revised Strategic High-Tech Commodities Entity List. This means that any Taiwanese company wishing to export technology or materials to these firms must now obtain explicit government approval.
The ban covers infrastructure and equipment vital to advanced semiconductor fabrication, including technologies for plant construction and precision manufacturing. A 2023 Bloomberg report had already indicated that such restrictions would severely hinder Huawei and SMIC’s ability to further develop their covert chip production networks—especially in southern China, where these efforts reportedly received tacit support from Taiwanese companies.
While Taiwan Semiconductor Manufacturing Co. (TSMC)—the world’s most advanced chipmaker—ceased all collaboration with Huawei in 2020 in compliance with U.S. regulations, the new measures ensure that the rest of Taiwan’s technology sector will now be held to similar domestic legal standards. This development is expected to significantly delay or even halt Huawei and SMIC’s attempts to match the high-performance