On Sunday, Taiwan added Chinese technical giants Huawei Technologies And Semiconductor Manufacturing International Corp. (Smic) to its strategic export control list, signaling escalating efforts to limit the access from Beijing to advanced chip technologies.
What happened: The Ministry of Economic Affairs of Taiwan updated its strategic high-tech raw material entity list on 10 June, with which 601 entities-inclusive Huawei and Smic-component organizations from Russia, Iran and Myanmar Reuters reported.
The ministry called “the prevention of weapon proliferation and other considerations of national security” as the reason behind this development.
The updated list is published on the website of the Handels Administration of the Ministry and contains references to terrorist groups such as the Taliban And al-Qaeda.
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“Manufacturers must comply with the export control regulations, comply with their verification obligations and carefully assess the transaction risks,” said the statement.
Why it is important: Taiwan is the home base Taiwan Semiconductor Manufacturing Co. TSMthe world’s largest contract chip maker and an important supplier for global companies such as Nvidia Corporation NVDA.
Adding Huawei and Smic to the blacklist reflects the growing concern about Chinese companies that are reportedly stolen intellectual property and chip talent from Taiwan poaching.
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Both companies are central to China’s ambitions to build a self -reliant Supply Chain from semiconductor in the midst of radical export restrictions. The relocation corresponds to Washington’s efforts to suffocate the access from China to high-end chips and AI technologies, especially those with the help of US-origin tools and software.
Earlier this week, Nvidia CEO Jensen Huang Announced that the company will exclude China from future turnover and profit forecasts as a result of the US export restrictions.
Nvidia had to stop the shipments of his China-specific H20 AI chips, which led to a $ 2.5 billion loss in the first quarter. While the company expected a hit of $ 5.5 billion from surplus inventory, it ultimately included a cost of $ 4.5 billion.
Benzinga’s Edge Stock Rankings Indicate that NVIDIA continues to show a robust upward momentum on short, medium and long -term time schedules. Extra performance statistics are accessible here.
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Indemnification: This content was partially produced with the help of AI tools and was assessed and published by Benzinga Editors.
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