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Japan Times
3 days ago
- Business
- Japan Times
U.S.-China tech fight widens after Taiwan blacklists Huawei
Taiwan joined a yearslong U.S. campaign to curtail China's technological ascent when it blacklisted the country's AI and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbor's semiconductor sector. Taipei this month added Huawei Technologies and China's main chipmaker, Semiconductor Manufacturing International Corp. (SMIC), to its entity list, barring the island's firms from doing business with the pair without a license. It was the first time Taiwanese officials have used that blacklist to sanction major Chinese firms, taking a cue from a longstanding U.S. approach of blocking access to advanced technologies. The move also marks Taipei's first public action on semiconductor restrictions since Taiwanese President Lai Ching-te pledged in April to address unspecified concerns from Washington about export controls. U.S. President Donald Trump's administration has urged Taipei to take more ownership over chip restrictions on China, people familiar with the matter said, with a particular focus on the enforcement of existing curbs. They requested anonymity as they weren't authorized to speak publicly. A congressional committee focused on China, meanwhile, said after Taipei's move that the U.S. "must continue working with our partners to ensure the CCP's attempts to illegally transfer tech are stopped cold,' referring to the Chinese Communist Party. Taipei's decision may be the first of a series of measures tightening the flow of technology to China, marking a departure from a policy of nurturing cross-strait business ties. The longer-term goal may be to throttle supply of the vital components, silicon materials and plant construction expertise that helped transform Taiwan Semiconductor Manufacturing Co. (TSMC) into the world's most advanced chip operation. "This recent shift marks a substantive move toward strategic technological competition with China,' said Chiang Min-yen, an analyst at Taiwan's government-funded Research Institute for Democracy, Society and Emerging Technology. "Compared to other tech democracies with similar industrial structures — such as Japan and South Korea — Taiwan is now taking a more decisive stance.' The Taiwan Semiconductor Manufacturing Co. campus in Hsinchu, Taiwan. Last year, the chipmaker unwittingly manufactured 2.9 million artificial intelligence dies for Huawei, based on estimates from researchers. | Bloomberg Lai didn't specify in his April comments what steps Taiwan would take in response to U.S. concerns, but instead described a broader strategy to boost trade relations with the U.S.. It's unclear whether the Huawei and SMIC sanctions are related to ongoing tariff negotiations with Washington, or whether the U.S. requested that specific step. The U.S. Department of Commerce, White House, Taiwan's Office of Trade Negotiations and China's Foreign Ministry didn't respond to requests for comment. The U.S. has pressured Taiwan to do more since Trump's first term, when officials urged Taipei to block sales of TSMC chips to China — before Washington imposed restrictions on some of TSMC's shipments to the world's second-largest economy. Under former U.S. President Joe Biden, Washington continually ramped up those China controls, which span both chips and the tools used to make them. Many of the U.S. measures use an authority known as the foreign direct product rule to restrict some activities of foreign firms — including Taiwanese ones — whose products contain even the tiniest bit of American tech. One major focus for American officials — under Trump as well as his predecessor — is ensuring that Taipei cracks down on TSMC sales that are restricted under U.S. rules, said people familiar with the matter, who asked not to be named discussing private conversations. Last year, TSMC, the go-to chipmaker for Apple and Nvidia, unwittingly manufactured 2.9 million artificial intelligence dies for Huawei, based on estimates from researchers. Those semiconductors were routed via an intermediary that has since been sanctioned by the U.S. government and cut off by TSMC, which is cooperating with Washington's ongoing investigation into the matter. But there also are a host of other business activities not captured by Washington's curbs — things such as construction contracts or sales of certain components. In 2023, it was reported that several Taiwanese companies were helping Huawei build infrastructure for an under-the-radar network of chip plants across southern China. Taiwanese officials said they would probe into those companies shortly after, but they've refrained from taking significant action — until now. It's unusual for Beijing's neighbors, who still see China as a crucial trading partner, to openly target its most strategic companies. While Japan joined a U.S.-led campaign to limit China's access to advanced chipmaking equipment, neither Tokyo nor Seoul has blacklisted Huawei or SMIC entirely. It's unclear whether Taiwan's sanctions against Huawei, as well as Semiconductor Manufacturing International Corp., are related to ongoing tariff negotiations with Washington, or whether the U.S. requested that specific step. | Bloomberg On its face, Taiwan's entity list action doesn't immediately upend routine business, in part because it doesn't apply to mainland-registered operations. Many Taiwanese companies have set up local subsidiaries to handle their business in mainland China over the years, and Taipei doesn't have jurisdiction over such entities. "I don't expect this announcement will cause any material impact for either Taiwan or Huawei and SMIC,' said Bloomberg Intelligence analyst Steven Tseng. "Huawei and SMIC don't really rely on Taiwan as they should have established a pretty decent level of 'local sourcing' in China after all these years.' It's the signal Lai is sending that's important. The new president has been working to reduce economic interdependence between China and Taiwan. His Democratic Progressive Party released a video over the weekend arguing that Taiwanese companies should look to diversify away from China — a shift from decades of the island's firms establishing a substantial presence on the mainland. Foxconn Technology Group built the world's largest iPhone assembly campus in central China, while TSMC runs chipmaking sites in Shanghai and Nanjing. Tensions escalated after Lai was elected last year. Beijing has accused him of seeking independence and destabilizing the region. Bilateral ties were further strained after Lai labeled China a "foreign hostile force' for the first time and unveiled wide-ranging measures to counter infiltration efforts. China claims the self-governing democracy is its territory and has vowed to unify with Taiwan, using force if necessary — a stance Taiwan rejects. Taiwan's annual investment in China peaked at $14.6 billion in 2010, though that spending plummeted to $3.6 billion last year. "Lai will now be able to speed up his agenda-setting against China on several fronts including defense, trade and tech, thanks to the changes in the global environment,' said Soong Hseik-wen, director of the Center for National Policy Research at Taiwan's National Chung Cheng University.
Yahoo
3 days ago
- Business
- Yahoo
US-China Tech Fight Widens After Taiwan Blacklists Huawei
(Bloomberg) -- Taiwan joined a yearslong US campaign to curtail China's technological ascent when it blacklisted the country's AI and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbor's semiconductor sector. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taipei this month added Huawei Technologies Co. and its main chipmaker Semiconductor Manufacturing International Corp. to its entity list, barring the island's firms from doing business with the pair without a license. It was the first time Taiwanese officials have used that blacklist to sanction major Chinese firms, taking a cue from a longstanding US approach of blocking access to advanced technologies. The move also marks Taipei's first public action on semiconductor restrictions since President Lai Ching-te pledged in April to address unspecified concerns from Washington about export controls. President Donald Trump's administration has urged Taipei to take more ownership over chip restrictions on China, people familiar with the matter said, with a particular focus on enforcement of existing curbs. They requested anonymity as they weren't authorized to speak publicly. A congressional committee focused on China, meanwhile, said after Taipei's move that the US 'must continue working with our partners to ensure the CCP's attempts to illegally transfer tech are stopped cold.' Taipei's decision may be the first of a series of measures tightening the flow of technology to China, marking a departure from a policy of nurturing cross-Strait business ties. The longer-term goal may be to throttle supply of the vital components, silicon materials and plant construction expertise that helped transform Taiwan Semiconductor Manufacturing Co. into the world's most advanced chip operation. 'This recent shift marks a substantive move toward strategic technological competition with China,' said Chiang Min-yen, an analyst at Taiwan's government-funded Research Institute for Democracy, Society and Emerging Technology. 'Compared to other tech democracies with similar industrial structures — such as Japan and South Korea — Taiwan is now taking a more decisive stance.' Lai didn't specify in his April comments what steps Taiwan would take in response to US concerns, but instead described a broader strategy to boost trade relations with the US. It's unclear whether the Huawei and SMIC sanctions are related to ongoing tariff negotiations with Washington, or whether the US requested that specific step. The US Department of Commerce, White House and Taiwan's Office of Trade Negotiations didn't respond to requests for comment. 'The DPP authorities' kneeling and ingratiating themselves with the U.S. will only hurt and ruin Taiwan's interests,' Foreign Ministry spokesman Guo Jiakun told a press briefing in Beijing, referring to the ruling party in Taipei. 'China opposes the U.S. politicizing tech and trade issues, overstretching the concept of national security, abusing export control and long-arm jurisdiction, and maliciously blocking and suppressing China.' The US has pressured Taiwan to do more since Trump's first term, when officials urged Taipei to block sales of TSMC chips to China — before Washington imposed restrictions on some of TSMC's shipments to the world's second-largest economy. Under President Joe Biden, the US continually ramped up those China controls, which span both chips and the tools used to make them. Many of the US measures use an authority known as the foreign direct product rule to restrict some activities of foreign firms — including Taiwanese ones — whose products contain even the tiniest bit of American tech. The White House would support any steps its allies take to prevent the circumvention of controls, an administration official said. One major focus for American officials — under Trump as well as his predecessor — is ensuring that Taipei cracks down on TSMC sales that are restricted under US rules, said people familiar with the matter, who asked not to be named discussing private conversations. Last year, TSMC, the go-to chipmaker for Apple Inc. and Nvidia Corp., unwittingly manufactured 2.9 million AI dies for Huawei, based on estimates from researchers. Those semiconductors were routed via an intermediary that has since been sanctioned by the US government and cut off by TSMC, which is cooperating with Washington's ongoing investigation into the matter. But there also are a host of other business activities not captured by Washington's curbs — things like construction contracts or sales of certain components. In 2023, Bloomberg News reported that several Taiwanese companies were helping Huawei build infrastructure for an under-the-radar network of chip plants across southern China. Taiwanese officials said they would probe into those companies shortly after, but they've refrained from taking significant action — until now. It's unusual for Beijing's neighbors, who still see China as a crucial trading partner, to openly target its most strategic companies. While Japan joined a US-led campaign to limit China's access to advanced chipmaking equipment, neither Tokyo nor Seoul has blacklisted Huawei or SMIC entirely. On its face, Taiwan's entity list action doesn't immediately upend routine business, in part because it doesn't apply to mainland-registered operations. Many Taiwanese companies have set up local subsidiaries to handle their business in mainland China over the years, and Taipei doesn't have jurisdiction over such entities. 'I don't expect this announcement will cause any material impact for either Taiwan or Huawei and SMIC,' said Bloomberg Intelligence analyst Steven Tseng. 'Huawei and SMIC don't really rely on Taiwan as they should have established a pretty decent level of 'local sourcing' in China after all these years.' It's the signal Lai is sending that's important. The new president has been working to reduce economic interdependence between China and Taiwan. His Democratic Progressive Party released a video over the weekend arguing that Taiwanese companies should look to diversify away from China — a shift from decades of the island's firms establishing a substantial presence on the mainland. Foxconn Technology Group built the world's largest iPhone assembly campus in central China, while TSMC runs chipmaking sites in Shanghai and Nanjing. Tensions escalated after Lai was elected last year. Beijing has accused him of seeking independence and destabilizing the region. Bilateral ties were further strained after Lai labeled China a 'foreign hostile force' for the first time and unveiled wide-ranging measures to counter infiltration efforts. China claims the self-governing democracy is its territory and has vowed to unify with Taiwan, using force if necessary — a stance Taiwan rejects. Taiwan's annual investment in China peaked at $14.6 billion in 2010, though that spending plummeted to $3.6 billion last year. 'Lai will now be able to speed up his agenda-setting against China on several fronts including defense, trade and tech, thanks to the changes in the global environment,' said Soong Hseik-wen, director of the Center for National Policy Research at Taiwan's National Chung Cheng University. --With assistance from Debby Wu, Catherine Lucey and James Mayger. (Updates with Chinese comment from the eighth paragraph.) Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
US-China Tech Fight Widens After Taiwan Blacklists Huawei
(Bloomberg) -- Taiwan joined a yearslong US campaign to curtail China's technological ascent when it blacklisted the country's AI and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbor's semiconductor sector. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taipei this month added Huawei Technologies Co. and its main chipmaker Semiconductor Manufacturing International Corp. to its entity list, barring the island's firms from doing business with the pair without a license. It was the first time Taiwanese officials have used that blacklist to sanction major Chinese firms, taking a cue from a longstanding US approach of blocking access to advanced technologies. The move also marks Taipei's first public action on semiconductor restrictions since President Lai Ching-te pledged in April to address unspecified concerns from Washington about export controls. President Donald Trump's administration has urged Taipei to take more ownership over chip restrictions on China, people familiar with the matter said, with a particular focus on enforcement of existing curbs. They requested anonymity as they weren't authorized to speak publicly. A congressional committee focused on China, meanwhile, said after Taipei's move that the US 'must continue working with our partners to ensure the CCP's attempts to illegally transfer tech are stopped cold.' Taipei's decision may be the first of a series of measures tightening the flow of technology to China, marking a departure from a policy of nurturing cross-Strait business ties. The longer-term goal may be to throttle supply of the vital components, silicon materials and plant construction expertise that helped transform Taiwan Semiconductor Manufacturing Co. into the world's most advanced chip operation. 'This recent shift marks a substantive move toward strategic technological competition with China,' said Chiang Min-yen, an analyst at Taiwan's government-funded Research Institute for Democracy, Society and Emerging Technology. 'Compared to other tech democracies with similar industrial structures — such as Japan and South Korea — Taiwan is now taking a more decisive stance.' Lai didn't specify in his April comments what steps Taiwan would take in response to US concerns, but instead described a broader strategy to boost trade relations with the US. It's unclear whether the Huawei and SMIC sanctions are related to ongoing tariff negotiations with Washington, or whether the US requested that specific step. The US Department of Commerce, White House and Taiwan's Office of Trade Negotiations didn't respond to requests for comment. 'The DPP authorities' kneeling and ingratiating themselves with the U.S. will only hurt and ruin Taiwan's interests,' Foreign Ministry spokesman Guo Jiakun told a press briefing in Beijing, referring to the ruling party in Taipei. 'China opposes the U.S. politicizing tech and trade issues, overstretching the concept of national security, abusing export control and long-arm jurisdiction, and maliciously blocking and suppressing China.' The US has pressured Taiwan to do more since Trump's first term, when officials urged Taipei to block sales of TSMC chips to China — before Washington imposed restrictions on some of TSMC's shipments to the world's second-largest economy. Under President Joe Biden, the US continually ramped up those China controls, which span both chips and the tools used to make them. Many of the US measures use an authority known as the foreign direct product rule to restrict some activities of foreign firms — including Taiwanese ones — whose products contain even the tiniest bit of American tech. The White House would support any steps its allies take to prevent the circumvention of controls, an administration official said. One major focus for American officials — under Trump as well as his predecessor — is ensuring that Taipei cracks down on TSMC sales that are restricted under US rules, said people familiar with the matter, who asked not to be named discussing private conversations. Last year, TSMC, the go-to chipmaker for Apple Inc. and Nvidia Corp., unwittingly manufactured 2.9 million AI dies for Huawei, based on estimates from researchers. Those semiconductors were routed via an intermediary that has since been sanctioned by the US government and cut off by TSMC, which is cooperating with Washington's ongoing investigation into the matter. But there also are a host of other business activities not captured by Washington's curbs — things like construction contracts or sales of certain components. In 2023, Bloomberg News reported that several Taiwanese companies were helping Huawei build infrastructure for an under-the-radar network of chip plants across southern China. Taiwanese officials said they would probe into those companies shortly after, but they've refrained from taking significant action — until now. It's unusual for Beijing's neighbors, who still see China as a crucial trading partner, to openly target its most strategic companies. While Japan joined a US-led campaign to limit China's access to advanced chipmaking equipment, neither Tokyo nor Seoul has blacklisted Huawei or SMIC entirely. On its face, Taiwan's entity list action doesn't immediately upend routine business, in part because it doesn't apply to mainland-registered operations. Many Taiwanese companies have set up local subsidiaries to handle their business in mainland China over the years, and Taipei doesn't have jurisdiction over such entities. 'I don't expect this announcement will cause any material impact for either Taiwan or Huawei and SMIC,' said Bloomberg Intelligence analyst Steven Tseng. 'Huawei and SMIC don't really rely on Taiwan as they should have established a pretty decent level of 'local sourcing' in China after all these years.' It's the signal Lai is sending that's important. The new president has been working to reduce economic interdependence between China and Taiwan. His Democratic Progressive Party released a video over the weekend arguing that Taiwanese companies should look to diversify away from China — a shift from decades of the island's firms establishing a substantial presence on the mainland. Foxconn Technology Group built the world's largest iPhone assembly campus in central China, while TSMC runs chipmaking sites in Shanghai and Nanjing. Tensions escalated after Lai was elected last year. Beijing has accused him of seeking independence and destabilizing the region. Bilateral ties were further strained after Lai labeled China a 'foreign hostile force' for the first time and unveiled wide-ranging measures to counter infiltration efforts. China claims the self-governing democracy is its territory and has vowed to unify with Taiwan, using force if necessary — a stance Taiwan rejects. Taiwan's annual investment in China peaked at $14.6 billion in 2010, though that spending plummeted to $3.6 billion last year. 'Lai will now be able to speed up his agenda-setting against China on several fronts including defense, trade and tech, thanks to the changes in the global environment,' said Soong Hseik-wen, director of the Center for National Policy Research at Taiwan's National Chung Cheng University. --With assistance from Debby Wu, Catherine Lucey and James Mayger. (Updates with Chinese comment from the eighth paragraph.) Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P.
Business Times
3 days ago
- Business
- Business Times
US-China tech fight widens after Taiwan blacklists Huawei
[TAIPEI] Taiwan joined a yearslong US campaign to curtail China's technological ascent when it blacklisted the country's artificial intelligence (AI) and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbour's semiconductor sector. Taipei this month added Huawei Technologies and its main chipmaker Semiconductor Manufacturing International Corporation (SMIC) to its entity list, barring the island's firms from doing business with the pair without a license. It was the first time Taiwanese officials have used that blacklist to sanction major Chinese firms, taking a cue from a longstanding US approach of blocking access to advanced technologies. The move also marks Taipei's first public action on semiconductor restrictions since President Lai Ching-te pledged in April to address unspecified concerns from Washington about export controls. US President Donald Trump's administration has urged Taipei to take more ownership over chip restrictions on China, sources familiar with the matter said, with a particular focus on enforcement of existing curbs. They requested anonymity as they were not authorised to speak publicly. A congressional committee focused on China, meanwhile, said after Taipei's move that the US 'must continue working with our partners to ensure the CCP's attempts to illegally transfer tech are stopped cold'. Taipei's decision may be the first of a series of measures tightening the flow of technology to China, marking a departure from a policy of nurturing cross-strait business ties. The longer-term goal may be to throttle the supply of the vital components, silicon materials and plant construction expertise that helped transform Taiwan Semiconductor Manufacturing Company (TSMC) into the world's most advanced chip operation. 'This recent shift marks a substantive move towards strategic technological competition with China,' said Chiang Min-yen, an analyst at Taiwan's government-funded Research Institute for Democracy, Society and Emerging Technology. 'Compared to other tech democracies with similar industrial structures – such as Japan and South Korea – Taiwan is now taking a more decisive stance.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lai did not specify in his April comments what steps Taiwan would take in response to US concerns, but instead described a broader strategy to boost trade relations with the US. It's unclear whether the Huawei and SMIC sanctions are related to ongoing tariff negotiations with Washington, or whether the US requested that specific step. The US Department of Commerce, the White House, Taiwan's Office of Trade Negotiations and China's Foreign Ministry did not respond to requests for comment. The US has pressured Taiwan to do more since Trump's first term, when officials urged Taipei to block sales of TSMC chips to China – before Washington imposed restrictions on some of TSMC's shipments to the world's second-largest economy. Under President Joe Biden, the US continually ramped up those China controls, which span both chips and the tools used to make them. Many of the US measures use an authority known as the foreign direct product rule to restrict some activities of foreign firms – including Taiwanese ones – whose products contain even the tiniest bit of American tech. One major focus for American officials – under Trump as well as his predecessor – is ensuring that Taipei cracks down on TSMC sales that are restricted under US rules, said sources familiar with the matter, who asked not to be named discussing private conversations. Last year, TSMC, the go-to chipmaker for Apple and Nvidia, unwittingly manufactured 2.9 million AI dies for Huawei, based on estimates from researchers. Those semiconductors were routed via an intermediary that has since been sanctioned by the US government and cut off by TSMC, which is cooperating with Washington's ongoing investigation into the matter. But there also are a host of other business activities not captured by Washington's curbs – things such as construction contracts or sales of certain components. In 2023, Bloomberg News reported that several Taiwanese companies were helping Huawei build infrastructure for an under-the-radar network of chip plants across southern China. Taiwanese officials said they would probe into those companies shortly after, but they have refrained from taking significant action – until now. It's unusual for Beijing's neighbours, who still see China as a crucial trading partner, to openly target its most strategic companies. While Japan joined a US-led campaign to limit China's access to advanced chipmaking equipment, neither Tokyo nor Seoul has blacklisted Huawei or SMIC entirely. On its face, Taiwan's entity list action does not immediately upend routine business, in part because it does not apply to mainland-registered operations. Many Taiwanese companies have set up local subsidiaries to handle their business in mainland China over the years, and Taipei does not have jurisdiction over such entities. 'I don't expect this announcement will cause any material impact for either Taiwan or Huawei and SMIC,' said Bloomberg Intelligence analyst Steven Tseng. 'Huawei and SMIC don't really rely on Taiwan as they should have established a pretty decent level of 'local sourcing' in China after all these years.' It's the signal Lai is sending that's important. The new president has been working to reduce economic interdependence between China and Taiwan. His Democratic Progressive Party released a video over the weekend arguing that Taiwanese companies should look to diversify away from China – a shift from decades of the island's firms establishing a substantial presence on the mainland. Foxconn Technology Group built the world's largest iPhone assembly campus in central China, while TSMC runs chipmaking sites in Shanghai and Nanjing. Tensions escalated after Lai was elected last year. Beijing has accused him of seeking independence and destabilising the region. Bilateral ties were further strained after Lai labelled China a 'foreign hostile force' for the first time and unveiled wide-ranging measures to counter infiltration efforts. China claims the self-governing democracy is its territory and has vowed to unify with Taiwan, using force if necessary – a stance Taiwan rejects. Taiwan's annual investment in China peaked at US$14.6 billion in 2010, though that spending plummeted to US$3.6 billion last year. 'Lai will now be able to speed up his agenda-setting against China on several fronts including defence, trade and tech, thanks to the changes in the global environment,' said Soong Hseik-wen, director of the Center for National Policy Research at Taiwan's National Chung Cheng University. BLOOMBERG
Kuwait Times
3 days ago
- Business
- Kuwait Times
Taiwan adds China's Huawei and SMIC to export blacklist
BEIJING: People are seen at an electronics store in a mall in Beijing on June 16, 2016. – AFP TAIPEI: Taiwan has put Chinese tech giant Huawei and chip titan SMIC on an export blacklist, further squeezing Beijing's access to the technology needed to build the most advanced chips. Huawei and Semiconductor Manufacturing International Corp were among 601 entities added to Taiwan's 'strategic high-tech commodities entity list', the Ministry of Economic Affairs' International Trade Administration said Sunday. Taiwan is a global chip powerhouse, producing more than half of the world's semiconductors — including almost all high-end chips. Local companies wanting to ship high-tech products to Huawei, SMIC or any other entity on the list will have to obtain permission from Taiwan's government. 'Based on the prevention of arms proliferation and other national security considerations, a total of 601 entities involved in arms proliferation activities were added to the list... including Chinese companies such as Huawei and SMIC,' the administration said in a statement. Other entities added to the list are based in Russia, Pakistan, Iran and Myanmar, according to the statement. Taipei's move deals another blow to Chinese tech companies, which are already facing increasing export restrictions imposed by the United States. The United States has expanded efforts to curb exports of state-of-the-art chips to China, concerned they could be used to advance Beijing's military systems and other tech capabilities. Washington recently unveiled guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically Huawei's Ascend chips, would put them at risk of violating US export controls. Tougher controls have prevented US chip giant Nvidia, one of Huawei's rivals, from selling certain AI semiconductors — widely regarded as the most advanced in the world — to Chinese firms. As a result, it is now facing tougher competition from local players in the crucial market, including Huawei. Nvidia's chief executive Jensen Huang told reporters last month that Chinese companies 'are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development'. But Huawei's chips still 'lag behind the United States by one generation', state media quoted its founder and CEO Ren Zhengfei as saying in a rare interview last week. Beijing has accused the United States of 'bullying' and 'abusing export controls to suppress and contain' Chinese firms. — AFP
