Taiwan joins chip war escalation, blocks exports to Huawei and SMIC

What just happened? Taiwan has imposed sweeping new export controls on two of China's most critical technology firms, Huawei Technologies and SMIC, thereby escalating a high-stakes battle over the future of advanced semiconductors and artificial intelligence. The move, announced by Taiwan's Ministry of Economic Affairs and approved by the International Trade Administration, places both companies on the strategic high-tech commodities entity list, a roster that includes organizations such as the Taliban, al-Qaeda, and sanctioned entities from Iran, Russia, and North Korea.

This designation means that any Taiwanese company wishing to export goods to Huawei or SMIC must now obtain a special permit. The controls are designed to prevent the unregulated transfer of sensitive technologies that could have military applications, reflecting mounting concerns in Taipei and among its Western allies about the potential misuse of cutting-edge chips.

Both Huawei and SMIC have already been targeted by extensive US sanctions ...