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Taiwan Tightens Export Controls, Targeting China's Semiconductor Industry

Taiwan's new controls hit China's chip ambitions. Geopolitical tensions drive tech sector divide.

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Taiwan Tightens Export Controls, Targeting China's Semiconductor Industry

Taiwan has bolstered its export controls, focusing on key players in China's semiconductor industry. This move, seen as congruent with US strategy, could reconfigure global tech supply chains and exacerbate geopolitical divisions.

Taiwan Semiconductor Manufacturing Company (TSMC), a global leader in chip production, is among the companies impacted by the new restrictions. Taiwan has added Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) to its export control blacklist, effectively blocking these Chinese firms from accessing Taiwan's advanced chipmaking infrastructure.

This action reflects a coordinated effort with US strategic goals to hinder Chinese semiconductor progress. It also highlights the growing segmentation of global technology supply chains, with geopolitical tensions driving a wedge between nations. Taiwan's decision is a significant stride towards a bifurcated global tech landscape, where access to advanced semiconductor technologies is influenced by geopolitical dynamics.

Taiwan's strategic importance as a technology ally to the US is evident in this move. The restrictions fortify existing loopholes and curtail collaboration between Chinese firms and Taiwanese companies. Huawei and SMIC, China's primary hopes for achieving semiconductor self-sufficiency, are the primary targets. Previously, Taiwanese companies had supported chip factory construction for these firms, predominantly in China. However, geopolitical tensions and export restrictions have limited this cooperation and subjected it to increasing regulatory oversight.

Taiwan's new export controls tighten the screws around Huawei and SMIC, making it more challenging for China to achieve semiconductor self-sufficiency. This move, aligned with US objectives, could reshape global tech supply chains and further divide the sector along geopolitical lines. Taiwanese companies must now seek government approval before exporting semiconductors to blacklisted Chinese firms.

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