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After Washington tightened AI chip export rules in May—saying using Huawei’s Ascend chips without a license is a violation of U.S. export control rules—Taiwan is stepping up too. On June 15, the International Trade Administration updated its export control list, adding 601 entities—including China’s tech heavyweights Huawei and SMIC—citing national security and anti-proliferation concerns, according to Economic Daily News, Bloomberg and AP.
Now classified as “strategic high-tech” entities, Huawei and SMIC will require Taiwanese firms to obtain special permits before doing business with them, AP reports. The move follows Washington’s order last November for TSMC to halt shipments of certain advanced chips to Chinese clients, further tightening China’s access to cutting-edge tech as well, the report adds.
However, as the Economic Daily News indicates, Taiwan’s move to blacklist Huawei and SMIC drew little reaction from local tech firms. Most declined to comment, noting they had already distanced themselves—or halted shipments—after the U.S. blacklisted Huawei a couple of years ago, as per the report.
The Economic Daily News notes that the new policy has little impact on Taiwanese suppliers. In fact, with Huawei under pressure worldwide, its rivals in smartphones and networking—many of them Taiwanese—could stand to benefit, the report suggests.
Huawei was once a major TSMC client, but the chipmaker stopped shipping to the company back in September 2020 and has publicly stated it’s not involved in any related investigations, according to the Economic Daily News.
Huawei and SMIC have long been barred from accessing advanced chip technology, with the U.S. leading the effort. According to CNN, SMIC was slapped on the Commerce Department’s restricted list in December, 2020 over military ties. Earlier that year, in May, the U.S. widened its Huawei ban to include not just American suppliers but also foreign chipmakers using U.S. equipment, Caixin said.
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(Photo credit: Huawei)
