- Taiwan restricts semiconductor exports, affecting Huawei and SMIC.
- Controls may disrupt supply chains.
- Potential implications for tech markets globally.
Taiwan has imposed new semiconductor export controls on Huawei and SMIC as of June 2025, heightening suspicion in the US-China tech rivalry.
New Export Controls
Taiwan has implemented new export controls on technology shipments to Huawei and SMIC. This step, led by Taiwan’s Ministry of Economic Affairs, adds both companies to the Strategic High-Tech Commodities Entity List.
“The International Trade Administration of Taiwan included Huawei, SMIC and a host of their subsidiaries in a Strategic High-Tech Commodities Entity List, according to the updated list published by the island’s Ministry of Economic Affairs on its website on Saturday.”
Implications for the Tech Market
The decision involves controls on exports, with key players including Huawei Technologies, SMIC, and Taiwan’s regulatory bodies. This measure reflects escalated restrictions due to ongoing US-China technological rivalries.
Impact on Global Markets
The new controls require government approval for exports to Huawei and SMIC, impacting technology and chip manufacturing sectors. Industries must now navigate these regulations, potentially influencing market stability.
Financial markets might experience uncertainty, with this move aggravating global tech tensions. Past incidents suggest possible volatility in both equity and crypto markets amid such geopolitical shifts.
Future Prospects
While digital assets remain unaffected, the sentiment around tech restrictions is significant. History shows similar actions leading to shifts in global asset prices.
Economic analysts suggest the controls could spur increased R&D within China, emphasizing domestic chip development. This aligns with historical outcomes from prior semiconductor restrictions involving US and Taiwanese firms.
