Taiwan Blacklists Huawei and SMIC, Escalating US-China Tech Tensions

Reviewed byNidhi Govil

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Taiwan has added Chinese tech giants Huawei and SMIC to its export control list, requiring Taiwanese companies to obtain permits before selling goods to these firms. This move aligns with US efforts to restrict China's access to advanced technologies, particularly in AI and semiconductors.

Taiwan's Strategic Move in the Global Tech Race

In a significant development that has sent ripples through the global technology sector, Taiwan has added Chinese tech giants Huawei Technologies Co. and Semiconductor Manufacturing International Corp (SMIC) to its export control list

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. This unprecedented move by Taiwan's International Trade Administration marks a new chapter in the ongoing US-China tech rivalry, with Taiwan aligning itself more closely with US efforts to curtail China's technological ascent

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Source: CNBC

Source: CNBC

Implications of the Blacklisting

The inclusion of Huawei and SMIC on Taiwan's "strategic high-tech commodities" list means that Taiwanese companies will now need to obtain export permits before selling goods to these Chinese firms

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. This restriction places Huawei and SMIC alongside entities such as the Taliban and al-Qaeda on Taiwan's blacklist, signifying the gravity of the situation

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Impact on China's Tech Ambitions

This move is particularly significant given Huawei and SMIC's central roles in China's efforts to achieve semiconductor self-sufficiency and AI supremacy

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. Both companies have been working diligently to catch up in the chip technology race, with Huawei at the forefront of China's AI ambitions

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Taiwan's Silicon Shield

Source: TechSpot

Source: TechSpot

Taiwan's decision carries substantial weight due to its pivotal role in the global semiconductor industry. The island is home to Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and a major supplier to AI industry leader Nvidia

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. Additionally, Taiwan hosts numerous other key semiconductor firms specializing in various aspects of chip production

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US-China Tech Tensions

This development comes against the backdrop of ongoing US-China trade tensions and concerns over the potential weaponization of cutting-edge technologies

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. The US has already placed both Huawei and SMIC under sanctions, and last November, it requested that TSMC halt supplies of advanced chips to Chinese customers

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Recent Controversies

Source: Tom's Hardware

Source: Tom's Hardware

The timing of Taiwan's decision is noteworthy, coming in the wake of revelations that Huawei had allegedly tricked TSMC into manufacturing one million AI processors despite US restrictions

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. This incident resulted in a substantial fine for TSMC and likely contributed to the tightening of controls.

Global Implications

As tensions escalate, the global tech industry braces for potential disruptions in supply chains and innovation pipelines. The move by Taiwan, a key player in the global semiconductor industry, signals a potential shift in the balance of power in the tech world and may force companies to reevaluate their strategies and partnerships in the face of increasing geopolitical complexities.

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