Huawei and SMIC just hit a major roadblock. Taiwan slapped both onto its strategic high-tech commodities entity list Saturday. The move tightens the screws on China’s AI and semiconductor ambitions by forcing export permits for any goods from Taiwanese suppliers.
The decision comes hot on the heels of Huawei getting caught using shell companies to sneak two million advanced AI chiplets out of TSMC. Now, Taiwan’s Commerce Ministry is clamping down to stop repeats.
These fresh controls join existing U.S. sanctions against Huawei and SMIC. But Taiwan controls some of the world’s most crucial semiconductor production, including TSMC and firms like UMC, ASE, SPIL, and Nanya. All these companies must now toe the line on exports to the two Chinese giants. 
Huawei and SMIC join a blacklist with groups like the Taliban and al-Qaeda, plus entities from Iran, Russia, North Korea, and others. Neither Taiwan’s ministry nor the blacklisted companies have commented yet.
Back in November, the U.S. already pushed TSMC to halt advanced chip sales to Chinese customers. A hefty fine followed when TSMC accidentally supplied Huawei with banned AI chiplets for its Ascend 910 processors. This latest blacklist update looks tied to behind-the-scenes talks on those supply chain concerns.
The crackdown puts Taiwan at the center of the ongoing tech war over AI chip access.
Sources: Bloomberg | Taiwan CNA
