Taiwan has escalated the global semiconductor race, delivering a significant blow to China’s tech ambitions. On June 15th, the nation’s International Trade Administration announced the addition of Huawei Technologies and Semiconductor Manufacturing International Corp. (SMIC) to its Strategic High-Tech Commodities Entity List. This move effectively restricts the export of crucial components to these two Chinese giants, hindering their progress in developing advanced chips vital for AI technologies.

The updated list, encompassing a total of 601 entities involved in activities deemed concerning to national security, also includes companies and nations such as those from Russia, Pakistan, Iran, Myanmar, and mainland China. The Taiwanese administration’s statement highlights the move as a crucial step in combating arms proliferation and safeguarding national security interests.

This decision marks a significant escalation in the ongoing US-China technological rivalry. By targeting Huawei and SMIC, two companies at the forefront of China’s push for self-sufficiency in the semiconductor sector, Taiwan is directly impacting China’s ability to compete with global leaders like Nvidia in the rapidly expanding AI market. The long-term effects of this strategic move remain to be seen, but it undoubtedly underscores the growing tensions and strategic importance of the semiconductor industry in the geopolitical landscape.