The US has placed large chip export restrictions on Huawei and Chinese companies over the past few years. This blocks the company’s access to critical semiconductors.
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Taiwan added China’s Huawei and Smic to its trade blacklist, further aligned with US trade policies, coming amid growing tensions with Beijing.
Two major Chinese chip companies have been placed in Taiwan.”Strategic high-tech product entities list“Along with many of their international subsidiaries.
Current regulations in Taiwan require a regulatory license before domestic companies can ship products to parties designated on the entity list.
in statement Taiwan’s International Trade Bureau said on its website that Huawei and Smic are one of the new foreign companies in 601 and are blacklisted for their involvement in arms proliferation and other national security concerns.
Huawei and Smic are also featured on the US trade blacklist and are affected by drastic control over Washington’s Advanced chips. Companies such as contracted chip makers Taiwan Semiconductor Manufacturing Co are already following US export restrictions.
However, the addition of Huawei and Smic to Taiwan’s blacklist is likely to be aimed at strengthening this policy and strengthening existing loopholes, independent semiconductor and technology analyst Ray Wang told CNBC.
He added that new domestic export controls could also raise penalties for potential future violations.
TSMC was caught in a controversy last October when it found a TSMC chip on a Huawei AI training card.
Following the discovery, the US Department of Commerce ordered TSMC to stop access to chips used for AI services. Report From Reuters. TSMC can also be done It is reportedly Faces $1 billion as a penalty to resolve the US investigation in question.
Huawei has been working on creating viable alternatives to Nvidia’s common processing units used for AI. However, experts say the company’s progress is limited by export controls and the lack of scale and capacity of the domestic chip ecosystem.
Still, Huawei is believed to have acquired millions of GPU Dies from TSMC on AI chips by using previous loopholes, according to Paul Triolo, China’s partner and senior vice president of China at advisory firm DGA-Albright Stonebridge Group.
Dies refer to small silicon materials that serve as the basis for building processors and contain the complex circuits and components needed to perform calculations.
According to Brady Wang, relevant director of CounterPoint Research, the latest export restrictions on SMIC and Huawei are expected to have minimal impact on TSMC’s business, but the move from the Taiwanese government will bring about “a considerable symbolic weight.”
“It underscores the Taiwanese government’s intention to work closer together with international efforts, particularly US-led efforts, to curb the transfer of advanced technology,” he told CNBC.
“Other Taiwanese companies, particularly component suppliers who may maintain indirect relationships with small IC design houses or Chinese companies such as Huawei and Smic, could face increased scrutiny and compliance obligations going forward,” he added.
Taiwan’s government’s crackdown on exports to Smic and Howay is amidst the tense geopolitical tensions with mainland China. This views its territory as its own territory, forcing a democratically governed island to reunite, if necessary.
In April, the US reaffirmed its commitment to supporting the existing status quo as China conducted extensive military exercises off the island’s coast.
in Statement reported by state media On Sunday, Wang, China’s top political adviser, repeatedly held Beijing’s position, calling for firm opposition to the promotion of national unity with Taiwan and Taiwan’s independence.
