Chinese tech giants Huawei and SMIC are likely to face new hurdles in their efforts to develop advanced AI chips, following Taiwan’s recent move to impose stricter export controls.
Taiwan’s International Trade Administration has added both companies along with their affiliated firms to an updated list of entities subject to enhanced regulations. This classification identifies them as handlers of sensitive high-tech goods, meaning any Taiwanese company wishing to do business with them must now obtain official approval.
The latest move could significantly disrupt Huawei and SMIC’s access to critical resources such as semiconductor manufacturing tools, high-grade materials, and specialized construction technologies required to build chip fabrication plants. This may slow down China’s push toward self-reliance in artificial intelligence and semiconductor innovation.
According to an official statement, the decision was part of a broader action taken on June 10, where over 600 entities from countries including Russia, Pakistan, Iran, Myanmar, and mainland China were added to the list. The stated aim is to curb the spread of technologies that could be used for military or other security-sensitive applications.
This development highlights the growing global scrutiny surrounding technology exports and the strategic importance of semiconductor production in current geopolitical dynamics. It also adds another layer of complexity to China’s ambitions in the AI and chipmaking industries, which are already under pressure from multiple international restrictions.
