Taiwan Restricts Chip Exports to Huawei and SMIC Following Huawei’s Deceptive Tactics to Secure AI Processors from TSMC Despite US Sanctions

Taiwan’s decision to blacklist Huawei and SMIC, two key players in China’s semiconductor and AI ambitions, poses significant challenges for these companies already sanctioned by the U.S. The move, prompted by concerns over technology weaponization amid ongoing U.S.-China trade tensions, requires both Huawei and SMIC to obtain export permits from Taiwanese suppliers for future acquisitions. This new restriction follows allegations that Huawei misled TSMC into producing two million banned AI chiplets. Taiwanese authorities categorize the blacklisted firms alongside groups like the Taliban and al-Qaeda, indicating a serious shift in policy. The restrictions also potentially affect other semiconductor firms in Taiwan, such as UMC and ASE, further constraining Huawei and SMIC’s access to critical tech resources. The implications of this decision may deepen the technological divide and regulatory barriers between China and Taiwan amidst escalating geopolitical tensions.

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