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Taiwan Tightens Export Controls on Chinese Tech Firms Citing National Security Risks

Taiwan Tightens Export Controls on Chinese Tech Firms Citing National Security Risks

Taiwan has added several major Chinese technology companies and their subsidiaries to its strategic high-tech commodities entity list, a move that significantly tightens restrictions on technology exports to these firms. This latest development reflects Taiwan’s alignment with broader global concerns over national security and advanced semiconductor technologies.

Effective immediately, Taiwanese companies must obtain special government approval before exporting specific technologies, materials, or equipment to the newly listed entities. The decision was quietly implemented and made available through an official update of the entity list on June 14, without a formal public announcement. It marks a notable escalation in Taiwan’s regulatory framework concerning the export of sensitive high-tech components and infrastructure.

The newly imposed restrictions are aimed at companies at the forefront of China’s drive to develop advanced artificial intelligence (AI) chips and semiconductors. By limiting their access to Taiwan’s semiconductor ecosystem, including critical plant construction technologies and fabrication materials, the move is expected to have a significant impact on their development trajectory. Taiwan is home to some of the most sophisticated semiconductor manufacturing firms in the world and plays a key role in the global chip supply chain, producing AI chips for leading technology firms globally.

These actions mirror similar moves by the United States, which previously designated certain Chinese technology companies as national security threats. In June 2020, American regulators officially restricted the use of public funds to purchase equipment or services from specific Chinese firms, citing concerns about espionage and technology transfer risks. Some of these companies were also placed on the U.S. entity list, curbing their ability to access critical foreign technologies, including software and advanced manufacturing equipment.

Taiwan’s updated export control list also includes several international subsidiaries of the affected Chinese companies, with branches in countries such as Japan, Germany, and Russia falling under the same regulatory scrutiny. The inclusion of these overseas operations indicates a broad application of Taiwan’s security measures, extending beyond domestic boundaries and encompassing global activities linked to the entities in question.

Industry analysts suggest that the expanded export controls could further isolate the targeted firms from key suppliers and advanced manufacturing capabilities essential to producing next-generation AI semiconductors. In particular, access to specialized equipment and technologies produced by Taiwan's top chipmakers may now be severely constrained.

This strategic move is seen as part of Taiwan’s broader effort to safeguard its national interests and technological leadership in the semiconductor domain amid escalating global tech tensions. The decision underscores the increasing importance of semiconductors in national security policies and signals a tightening regulatory environment for cross-border technology flows involving sensitive or dual-use technologies.

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