Chinese companies like Huawei and SMIC are facing even greater challenges as TSMC’s latest decision has ramped up difficulties in accessing foreign supplies for chip manufacturing. TSMC, a leading semiconductor manufacturer, has added these firms to its export control list, mandating them to secure official permits for any overseas equipment. This move may push them towards achieving self-reliance, though the road is fraught with challenges.
TSMC’s revised list, which now incorporates a total of 601 entities, also includes companies from countries like Russia, Pakistan, Iran, and Myanmar. This update was announced on the Taiwan ministry’s trade administration website, citing national security concerns and the prevention of arms proliferation. As a result, manufacturers must adhere to export control regulations and meticulously assess transaction risks.
Previously, the U.S. administration also targeted Huawei, imposing restrictions that prevented it from engaging with key players in the semiconductor industry. However, despite these barriers, it was reported that Huawei managed to source its Ascend 910C AI accelerator chips from TSMC, casting doubt on the effectiveness of U.S. export limitations.
TSMC clarified that it halted shipments to Huawei as of September 2020. If any suspicious activities are detected, they are committed to taking strict compliance measures. In a previous incident in late 2024, TSMC faced a $1 billion fine when Huawei’s Ascend 910B chips were found to be using their products, prompting a revision of their compliance protocols.
In response to mounting restrictions, China is accelerating its own technological advancements. Their homegrown EUV machines are slated to enter trial production by the third quarter of 2025. Moreover, Huawei’s ally, SiCarrier, is reportedly working on machines to rival those of ASML.
