TECH NEWS – The two Chinese companies have been placed on an export restriction list, meaning they must now obtain permission from their suppliers to receive products for manufacturing.

Huawei and SMIC now face even greater hurdles in acquiring foreign supplies for their semiconductor operations. The Taiwanese chip manufacturing giant has added both companies to its export control list, requiring them to obtain formal licenses for any overseas equipment purchases. While this move could push the firms toward greater self-sufficiency, the path forward remains highly challenging.

The names of the two companies appeared on the website of Taiwan’s Bureau of Foreign Trade, which issued a statement saying it had convened a review meeting on June 10 to update the list, citing non-proliferation goals and broader national security concerns. In total, 601 entities are now listed on the TSMC export restriction list, including organizations from Russia, Pakistan, Iran, and Myanmar.

Manufacturers are required to follow export control regulations, meet their compliance obligations, and thoroughly assess the risks involved in any transactions. Huawei remains under close watch by the U.S. government, which has essentially prohibited it from doing business with leading players in the chip design and semiconductor sectors. In April, reports emerged that Huawei was still acquiring its Ascend 910C AI accelerator chips from TSMC, casting doubt on the actual effectiveness of U.S. export restrictions.

TSMC has responded by stating that it has ceased all shipments to Huawei since September 2020, and that it enforces strict measures to ensure compliance whenever suspicious activity is detected. In late 2024, the world’s top semiconductor manufacturer was hit with a $1 billion fine after chips were found in Huawei’s Ascend 910B devices, leading TSMC to implement new verification protocols for client orders.

As the restrictions tighten, China is reportedly accelerating efforts to become self-reliant, with pilot production using its own EUV machines expected to begin between July and September. Meanwhile, Huawei’s partner, SiCarrier, is said to be developing EUV machines to rival those made by ASML.

Source: WCCFTech, Bloomberg