Taiwan ban on Huawei fueling up US-China chip tech battle

Huawei is again under pressure as Taiwan has joined the US-led chip tech ban. In a recent move, the country has blacklisted some of the top Chinese chipmaking firms. However, this step will eventually escalate the fight between the US and China.

Bloomberg reports that U.S. President Donald Trump has urged Taiwan to take more control of chip restrictions in China. Although this step will end support for cross-strait business ties.

It may further choke the supply of major tech components like silicon and plant construction materials, which once helped TSMC to transform its facilities in Taiwan.

One of the analysts at Taiwan-funded Research Institute for Democracy, Society, and Emerging Technology – Chiang Min-yen, said:

“This recent shift marks a substantive move toward strategic technological competition with China. Compared to other tech democracies with similar industrial structures, such as Japan and South Korea, Taiwan is now taking a more decisive stance.”

Flashback…

US-China tech war has been a years-long tale, where Huawei has remained the center of attraction. Over time, the company saw many ups and downs in the chip field.

Meanwhile, Taiwan’s entry into the US-led chip sanctions can further fuel tensions between the foreign authorities and China. Taiwan imposed a chip ban on Huawei and SMIC, restricting them from doing business in the country without a license.

(Image Credits: Huawei)

It is the first time that Taiwan has officially sanctioned a Chinese firm. The country had rules for China in chip export controls, but it never banned a company.

However, Taiwan took the sanctions step to close the backdoors that are helping Huawei and China with the advanced chip tech in any way. As per the details, many Taiwanese firms have been helping Huawei build an infrastructure for an under-the-radar network of chip plants across southern China.

Perhaps, the new President of Taiwan, Lai Ching-te, is trying to reduce the economic interdependence between China and Taiwan. Last year, the country’s investment in China declined to $3.6 billion. Another Taiwanese analyst said:

“Lai will now be able to speed up his agenda-setting against China on several fronts, including defense, trade, and tech, thanks to the changes in the global environment.”

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