Taiwan Blacklists Huawei and SMIC: Strategic Move to Align with U.S. Trade Policy

Huawei and SMIC Added to Taiwan’s Trade Blacklist

In a bold move with significant geopolitical and technological implications, Taiwan has added Chinese tech giants Huawei and SMIC (Semiconductor Manufacturing International Corporation) to its Strategic High-Tech Commodities Entity List, effectively blacklisting them from regular trade.

This update brings an additional 601 foreign entities under Taiwan’s export control, primarily due to national security concerns and involvement in arms proliferation activities, according to Taiwan’s International Trade Administration.

Licensing Now Required for Exporting to Blacklisted Entities

Under current regulations, Taiwanese companies must obtain special licenses before exporting products, technology, or components to any entity on the blacklist. This decision significantly raises the barrier for any cooperation with Huawei or SMIC, reinforcing Taiwan’s commitment to controlling high-tech exports.

A Clear Alignment with U.S. Export Controls

Both Huawei and SMIC have already been targeted by U.S. trade sanctions, particularly in the field of semiconductors and AI-related technologies. Taiwanese semiconductor leader TSMC (Taiwan Semiconductor Manufacturing Company) has long adhered to U.S. export restrictions.

However, Taiwan’s decision appears to be more than symbolic — it closes potential legal loopholes and increases penalties for violations, according to independent tech analyst Ray Wang.

TSMC Controversy: Huawei Chip Found in AI Card

This decision comes in the wake of a controversy in October, when research firm TechInsights discovered a TSMC-manufactured chip in a Huawei AI training card. In response, the U.S. Commerce Department ordered TSMC to halt AI chip supplies to Chinese customers, with reports suggesting TSMC could face a $1 billion fine for possible violations.

Huawei’s Struggles in Developing AI Alternatives

While Huawei continues its efforts to build alternatives to Nvidia’s GPUs for AI processing, experts say its progress is limited by export restrictions and lack of domestic semiconductor capacity. Despite these hurdles, it is believed that Huawei acquired several million GPU dies from TSMC through loopholes — now presumably closed.

A die is the small, silicon-based core of a processor that contains all the intricate circuits enabling computation.

Heightened Tensions with China as Backdrop

Taiwan’s move comes at a time of escalating geopolitical tensions with Beijing, which considers the island part of its territory and has not ruled out military reunification. In April, the U.S. reaffirmed support for Taiwan amid large-scale Chinese military drills.

On the other hand, China’s top political adviser, Wang Huning, reiterated the call for national reunification and opposition to Taiwan independence, as reported by Chinese state media.

Conclusion

Taiwan’s decision to blacklist Huawei and SMIC signals a strategic alignment with U.S. trade and technology policy, reinforcing global efforts to limit China’s access to advanced chip technologies. The move reflects growing consensus among democratic nations to prioritize national security in high-tech exports, especially amid rising tensions over AI and semiconductor dominance.

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