Taiwan’s International Trade Committee (ITAC) Releases SHTC Entity List
On June 17, the Taiwan International Trade Committee (ITAC) published the “Strategic High-Tech Goods Export Entity Management List” (SHTC Entity List), which includes Chinese technology company Huawei and China’s largest semiconductor foundry, SMIC, along with several of its subsidiaries. ITAC stated that this round of regulatory restrictions is based on “preventing the proliferation of weapons and addressing national security concerns,” emphasizing that it was officially implemented on June 10.
Taiwan Targets Huawei and SMIC, AI Factory Plans Hampered
According to existing Taiwanese regulations, any exports of goods to listed entities must be applied for in advance and approved by the government. This means that Huawei and SMIC will face restrictions in obtaining advanced semiconductor manufacturing technologies, equipment, and materials from Taiwan in the future. This move could severely undermine Huawei and SMIC’s ability to establish AI wafer fabs, particularly in advanced packaging, critical equipment, and materials supply, further widening the technological gap with TSMC.
In 2023, Bloomberg reported that several Taiwanese manufacturers were covertly assisting Huawei in constructing a series of chip factories in southern China, allegedly to help Chinese chipmakers circumvent U.S. sanctions and restart manufacturing chains. Now, the Taiwanese government has begun to tighten controls, severing these “covert operations” one by one.
Advanced Equipment and IP Imports Blocked, Domestic 7nm Chip Shocks the World
Not only Chinese enterprises, but Taiwan’s recent listing also targets Huawei’s subsidiaries located in Japan, Germany, and Russia. In fact, Huawei and SMIC have long been included on the U.S. export control list, almost completely cut off from external supplies of advanced technology.
However, after Huawei and SMIC launched a locally manufactured 7nm chip in 2023, it immediately shocked the world. Even with multiple blocks on equipment and IP licensing, the two companies have still managed to produce AI chips in China, compelling external observers to reevaluate China’s processing capabilities.
From Technology Control to Political Stance, AI Chips as Instruments of National Sovereignty
This proactive move by Taiwan to list Huawei and SMIC is interpreted as a countermeasure against China’s ongoing infiltration and military threats. Particularly, President Lai Ching-te’s public designation of China as a “foreign hostile force” earlier this year and the initiation of a series of anti-infiltration measures have significantly strained relations between the two sides.
In fact, Taiwan has already imposed several export restrictions on China, such as stringent controls on advanced manufacturing equipment like exposure machines. However, this time, it is notably rare to see prominent Chinese technology companies explicitly named in the controls.
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