Huawei and SMIC Added to TSMC’s Export Control List: Permit Required for Goods from Suppliers

Recently, the Taiwanese semiconductor leader TSMC has made a significant move that tightens restrictions on major Chinese companies, particularly Huawei and SMIC. With their inclusion in TSMC’s export control list, these firms now face additional hurdles in procuring essential foreign equipment for semiconductor manufacturing. This development compels Huawei and SMIC to innovate and find alternative solutions for chip production.

Inclusion of Huawei and SMIC in TSMC’s Export Control List

TSMC’s updated export control list has grown to encompass 601 entities, with Huawei and SMIC being prominently mentioned. This update was announced on June 10 by Taiwan’s Ministry of Economic Affairs, highlighting the government’s intent to mitigate risks associated with arms proliferation and safeguard national security. The list features entities from various nations including Russia, Pakistan, Iran, and Myanmar, underscoring the global scope of these controls.

The ministry emphasized the importance of adherence to export regulations, urging manufacturers to conscientiously evaluate transaction risks and fulfill verification obligations. While the U. S.administration has also targeted Huawei, effectively cutting its ties with leading players in the semiconductor sector, it was previously reported that Huawei managed to acquire Ascend 910C AI accelerator chips from TSMC, raising questions about the impact of U. S.export restrictions.

TSMC’s Compliance Measures Following Penalties

In response to regulatory pressures, TSMC confirmed that it ceased shipments to Huawei as of September 2020. Following a $1 billion fine in late 2024 for violations involving Huawei’s Ascend 910B chips, the semiconductor giant has been compelled to reassess and strengthen its compliance protocols to prevent similar issues in the future. The company is now more vigilant regarding the legitimacy of its transactions, aiming to uphold strict adherence to export controls.

China’s Countermeasures and Future Prospects

Amidst these challenges, China appears to be taking strategic steps to mitigate reliance on foreign technology. Reports indicate that Chinese-made extreme ultraviolet (EUV) machines are set to enter trial production in the third quarter of 2025. Furthermore, Huawei’s collaboration with SiCarrier aims to develop competing machines to those produced by ASML, showcasing China’s ambition to enhance its domestic semiconductor capabilities.

For more detailed information on this developing story, visit the original news source: Bloomberg.

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