Further restrictions are now faced by mainland China, particularly Huawei and Semiconductor Manufacturing International Corporation (SMIC), in their quest to develop artificial intelligence as Taiwan, one of the world’s largest processor manufacturing regions, places new export controls against them.
Taiwan is currently known as one of the top sources of components that are integral to building AI chips for different applications, but it is now closing its doors against the mainland.
Not only are China and its companies affected by the latest changes, but other global regions and entities are also added to the existing list of Taiwanese export controls on AI processors.
China’s Huawei, SMIC Now Face Taiwan Export Controls
A new report by Bloomberg reveals that Taiwan’s International Trade Administration has updated its list of entities that it designates as strategic high-tech commodities, adding further export controls to its technologies. Specifically, Taiwan has imposed additional export controls against mainland China, particularly on Huawei and SMIC.
Due to this recent change, Huawei and SMIC will lose access to Taiwan’s significant chip development processes, construction technologies, assets, materials, equipment, and more, according to TechCrunch.
This also means that all Taiwanese businesses that want to ship components and services to companies or countries part of this list of entities would have to gain government approval before doing so.
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AI Chip Development to Slow Down in China
Effectively, this latest drawback would further slowdown China’s development of its technologies, particularly in its efforts to push more artificial intelligence technologies in the region.
Other countries that are affected by these new Taiwanese export controls include Iran, Myanmar, Pakistan, and Russia.
China and the Chip Restrictions It Faces
In recent years, China has faced restrictions when it comes to its technology developments, specifically when it comes to chips. During the administration of Former US President Joe Biden, the government waged a more profound ban against China from accessing chips and components that help create AI processors.
The fight against China also saw a deep probe against the Taiwanese Semiconductor Manufacturing Company (TSMC) last year for allegedly helping Huawei and SMIC develop smartphones and AI chips. This centers on upholding the US sanctions against the East Asian giant, which TSMC allegedly violated by helping Huawei and SMIC in their ventures.
Despite the claimed “bullying” of the United States against China, the East Asian superpower revealed that it has $27 billion in funding all dedicated to helping develop processors and rival American technology.
In the current Trump administration, the scrutiny against China continues as the government has imposed heavier tariffs against the Asian giant’s imports coming into the US.
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