Chinese companies Huawei and SMIC may have difficulty accessing the resources needed to create artificial intelligence chips due to Taiwan’s export controls.
Bloomberg reports that Taiwan’s International Trade Administration has added the two companies and their subsidiaries to an updated list of entities designated as strategic high-tech goods. This means that Taiwanese businesses will need government approval before they can send anything to either company.
As a result, Huawei and SMIC will lose access to Taiwan’s factory construction technologies, materials, and equipment, potentially setting back China’s efforts to develop new semiconductors for artificial intelligence, Bloomberg writes.
“On June 10, we added about 601 companies from Russia, Pakistan, Iran, Myanmar, and mainland China, including Huawei and SMIC, to the list of entities to combat arms proliferation and other national security issues,” the Commerce Administration said in a statement.
