Huawei and SMIC hit a major roadblock
Taiwan’s International Trade Administration has placed Huawei and SMIC on an updated list of entities designated as strategic high-tech commodities, restricting their access to certain resources. The announcement, reported by Bloomberg, impacts the companies’ ability to acquire AI chip building resources.
The updated designation means Taiwanese businesses must now secure government approval before shipping any goods to Huawei, SMIC, or their subsidiaries. This measure restricts Huawei and SMIC’s access to Taiwanese plant construction technologies, materials, and equipment.
According to the trade administration, this action is intended to address national security concerns. “On June 10, we added some 601 entities from Russia, Pakistan, Iran, Myanmar and mainland China including Huawei and SMIC to the entity list to combat arms proliferation and address other national security concerns,” the trade administration stated.