Huawei And SMIC Have Now Been Included In TSMC’s Export Control List, With Both Chinese Entities Now Requiring A Permit From Suppliers To Receive Manufactured Goods

Chinese entities were already backed into a corner, but with the latest decision taken by TSMC, companies like Huawei and SMIC will now have to get even more creative if they ever want to get their hands on any foreign supplies to manufacture chips. According to the latest report, the Taiwanese semiconductor giant has included the two aforementioned firms in its export control list, meaning that both Huawei and SMIC now have to obtain an official permit if they desire any overseas equipment. This turn of events could provide more encouragement to these companies to seek self-sufficiency, but the path ahead is difficult.

Both Huawei and SMIC were two out of a mammoth 601 entities that have been included in TSMC’s export control list

The two names have been included in an updated version of the Taiwan ministry’s trade administration’s website, which mentioned in a statement that it had set up a meeting to review the list and ‘based on the prevention of arms proliferation and other national security considerations,’ added Huawei’s and SMIC’s names on June 10. In total, 601 names are on TSMC’s export control list, including those from Russia, Pakistan, Iran, and Myanmar.

The statement adds that ‘manufacturers must comply with export control regulations, fulfil their verification obligations and carefully assess transaction risks.’ Huawei was also in the crosshairs of the U.S. administration, which essentially banned the company from doing business with notable names in the semiconductor and chip design industry. However, we reported back in April this year that Huawei could still source its Ascend 910C AI accelerator chips from TSMC, thereby questioning the efficacy of the U.S. export controls.

TSMC responded that it had stopped shipping orders to Huawei from September 2020, and that if it notices any suspicious activity, it will take strict action to ensure compliance. In late 2024, the world’s largest semiconductor manufacturer was fined $1 billion when it was discovered that its chips were found in Huawei’s Ascend 910B, forcing the company to likely go back to the drawing board and draft a new set of protocols that strengthen the due diligence of orders being shipped to certain customers.

Amidst this crackdown, China is taking matters into its own hands, with its in-house EUV machines reportedly entering trial production in Q3 2025. Huawei’s partner SiCarrier is also said to be developing machines that will compete with ASML.

News Source: Bloomberg