Taiwan Adds Huawei and SMIC to Export Control List, Intensifying AI Chip Technology Tensions

Reviewed byNidhi Govil

9 Sources

Taiwan has blacklisted Chinese tech giants Huawei and SMIC, requiring Taiwanese companies to obtain export permits before selling goods to these firms. This move escalates the ongoing trade and technology tensions between Taiwan, China, and the United States in the AI chip sector.

Taiwan's Strategic Move in the AI Chip Race

Taiwan has taken a significant step in the ongoing global technology competition by adding Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control list. This decision, made by Taiwan's International Trade Administration, requires Taiwanese companies to obtain government approval before exporting any products to these firms 1.

Source: Economic Times

Source: Economic Times

The inclusion of Huawei and SMIC on the "strategic high-tech commodities" list places them alongside other proscribed organizations such as the Taliban and al-Qaeda 2. This move is seen as a major blow to China's efforts to develop cutting-edge AI chip technologies, as both companies have been at the forefront of these endeavors.

Impact on the Global Semiconductor Industry

Taiwan's decision has far-reaching implications for the global semiconductor industry. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and a major supplier to AI leader Nvidia, is based in Taiwan 2. The new export controls will likely affect the supply chain of advanced chips, particularly those used in AI applications.

Last October, Canadian tech research firm TechInsights discovered a TSMC chip in Huawei's 910B AI processor, which is considered the most advanced AI accelerator mass-produced by a Chinese company 2. This finding led to increased scrutiny and restrictions on chip exports to Chinese firms.

Escalating Technology Tensions

Source: Bloomberg Business

Source: Bloomberg Business

The addition of Huawei and SMIC to Taiwan's export control list is the latest development in the ongoing technology tensions between China, Taiwan, and the United States. Both Huawei and SMIC have already been sanctioned by the U.S., with Huawei being on a U.S. Commerce Department trade list that essentially bars it from receiving U.S. goods and technology 2.

These restrictions have prompted Chinese companies to intensify their efforts in developing homegrown AI chip technologies. Huawei and SMIC are at the forefront of this push, aiming to compete with U.S.-based companies like Nvidia and supply Chinese tech firms with much-needed chips amid export curbs 3.

Geopolitical Implications

The export control decision by Taiwan adds another layer of complexity to the already tense relationship between Taiwan and China. China claims self-ruled Taiwan as its own territory, to be annexed by force if necessary, while the U.S. remains Taiwan's biggest unofficial ally and arms seller 4.

This move aligns with broader efforts by the United States to restrict China's access to cutting-edge technologies. In November, the U.S. ordered TSMC to halt supplies of certain advanced chips to Chinese customers 5. Taiwan's government has also vowed to crack down on what it claims are efforts by Chinese companies, including SMIC, to steal technology and entice chip talent away from the island 2.

Future of AI Chip Development

Source: The Seattle Times

Source: The Seattle Times

As tensions escalate and export controls tighten, the future of AI chip development becomes increasingly uncertain. Chinese companies like Huawei and SMIC are likely to redouble their efforts in developing indigenous technologies, while companies in Taiwan and the United States may face challenges in maintaining their technological edge without access to the vast Chinese market.

Explore today's top stories

Tech Giants Race to Develop Revolutionary AI Device, Led by OpenAI and Jony Ive

OpenAI partners with former Apple design chief Jony Ive to create a groundbreaking AI gadget, as tech companies compete to define the future of AI interaction.

Tech Xplore logoFrance 24 logoEconomic Times logo

3 Sources

Technology

11 hrs ago

Tech Giants Race to Develop Revolutionary AI Device, Led by

AI and Space Lasers Revolutionize Forest Carbon Mapping for Climate Science

A groundbreaking study combines satellite data, space-based LiDAR, and AI algorithms to rapidly and accurately map forest carbon, potentially transforming climate change research and forest management.

ScienceDaily logoPhys.org logo

2 Sources

Science and Research

11 hrs ago

AI and Space Lasers Revolutionize Forest Carbon Mapping for

Chinese AI Companies Bypass US Chip Restrictions Through Innovative Data Center Rentals in Southeast Asia

Chinese AI firms are circumventing US chip export controls by renting data centers in countries like Malaysia, training AI models on high-end chips, and transporting data via hard drives.

Futurism logoWccftech logo

2 Sources

Technology

3 hrs ago

Chinese AI Companies Bypass US Chip Restrictions Through

Amazon to Invest $13 Billion in Australia's Data Center Infrastructure, Boosting AI Capabilities

Amazon announces a significant $13 billion investment in Australia's data center infrastructure from 2025 to 2029, aimed at expanding AI capabilities and supporting generative AI workloads.

Reuters logoEconomic Times logoMarket Screener logo

3 Sources

Business and Economy

19 hrs ago

Amazon to Invest $13 Billion in Australia's Data Center

Huawei's Ascend 910D: A Quad-Chiplet AI Accelerator Challenging Nvidia's Dominance

Huawei is developing a quad-chiplet AI accelerator, the Ascend 910D, potentially rivaling Nvidia's H100 GPU. This move showcases China's efforts to overcome US sanctions and compete in the AI chip market.

Tom's Hardware logoWccftech logo

2 Sources

Technology

19 hrs ago

Huawei's Ascend 910D: A Quad-Chiplet AI Accelerator
TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

Β© 2025 Triveous Technologies Private Limited
Twitter logo
Instagram logo
LinkedIn logo