
Taiwan adds Huawei, SMIC to trade blacklist amid escalating US-China tech rivalry
Advertisement
The International Trade Administration of Taiwan included Huawei, SMIC and a host of their subsidiaries in a Strategic High-Tech Commodities Entity List, according to the updated list published by the island's Ministry of Economic Affairs on its website on Saturday.
Huawei and SMIC did not immediately respond to a request for comment on Sunday.
The entity list barred both companies from acquiring key semiconductor technologies from Taiwanese companies, dealing a blow to China's chipmaking ambitions to rival US producers like Nvidia.
The restrictions would further tighten existing loopholes and curb collaboration between Chinese firms on the entity list and Taiwanese companies, adding to a series of export bans by the US on mainland tech leaders, said Ray Wang, a Washington-based semiconductor and tech analyst.
Advertisement
Shenzhen-based Huawei and Shanghai-based SMIC, both sanctioned by the US, are seen as China's best hopes in making breakthroughs in the chip sector. The pair launched a home-grown chip made on a 7nm process that debuted in Huawei's premium Mate 60 smartphone lines in 2023, prompting Washington to reflect on whether its sanctions were working.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


South China Morning Post
an hour ago
- South China Morning Post
BYD challenges Tesla with more affordable Atto 2 SUV targeting first-time EV buyers
Chinese electric vehicle (EV) manufacturer BYD is targeting first-time buyers in Hong Kong with the launch of a competitively priced car model, building on its recent ascension as the local market leader, overtaking Tesla. On Friday, the Shenzhen-based carmaker introduced the Atto 2, a fully electric right-hand-drive compact SUV priced at HK$169,800 (US$21,630) after tax in Hong Kong. Equipped with BYD's proprietary blade battery packs, the Atto 2 has a range of up to 410km (254 miles) on a single charge – more than adequate for daily commutes in the city. Recharging the battery from 10 per cent to 80 per cent takes just 38 minutes, according to BYD. 'Our pricing is quite reasonable and very affordable,' said Liu Xueliang, BYD's Asia-Pacific sales general manager, during an interview in Hong Kong. 'Our main focus is to attract young people,' he said, adding that the company aimed to 'offer the best value-for-money products that are truly worth having'. With a population of 7.5 million, Hong Kong is a relatively small market, selling fewer than 40,000 cars annually. Still, its affluence and concentration of ultra-wealthy residents make it a lucrative market for premium brands. Some companies also consider the city a testing ground for self-driving technologies and a way to break into the global right-hand-drive market.


South China Morning Post
an hour ago
- South China Morning Post
China's SMIC downplays impact of Trump's plan to impose 100% tariff on chip imports
Semiconductor Manufacturing International Corp (SMIC), mainland China's largest contract chipmaker, on Friday downplayed the potential impact of US President Donald Trump 's proposed 100 per cent tariff on imported chips, as stout domestic demand is expected to continue. 'Our overall capacity remains in a state of demand exceeding supply,' SMIC co-CEO Zhao Haijun said in a briefing after the company reported its second-quarter financial results. '[Even if growth in demand slows], there will be no significant impact on our utilisation rate.' He said the company has already helped clients build up a certain level of inventory in the first three quarters of the year. Orders and shipments are expected to slow in the fourth quarter, which is the typical off-season for the industry. Apart from citing SMIC's limited exposure to the US market and production at its factories running at full capacity, Zhao pointed out that previous tariff disputes resulted in a less than 10 per cent impact on SMIC's overseas clients. His assessment reflected Shanghai -based SMIC's strong confidence in its current global market mix, as China accounted for 84.1 per cent of the firm's sales in the three months to June. Revenue share from the Americas fell to 12.9 per cent last quarter, from 16 per cent a year earlier. SMIC reported second-quarter revenue of US$2.21 billion, up 16.2 per cent from US$1.9 billion a year earlier, but down 1.7 per cent from the previous quarter's US$2.25 billion. Net profit attributable to shareholders reached US$132.5 million last quarter, down 19.5 per cent from US$164.6 million a year ago. That also marked a 29.5 per cent decline from US$188 million in the first quarter.


South China Morning Post
an hour ago
- South China Morning Post
China's steelmakers cool competitive fires as price war cuts profit margins
As a fierce price war threatens to turn their revenues microscopic, China's steel firms are calling for changes to make the industry less self-destructive – a move in line with directives from Beijing to suppress a downward spiral that has degraded multiple sectors of the country's economy. Advertisement While acknowledging the seemingly endless drive to reduce prices is erasing profit margins, industry insiders still struggle to find a market for their chronic oversupply, and expressed scepticism over the extent to which the state-led campaign can alleviate their burdens. Steel is regarded as one of several sectors experiencing a phenomenon referred to by officials as neijuan or 'involution' , a cutthroat level of competition where firms pour increasing resources into efforts that yield diminishing returns. The term has made more frequent appearances in high-level political meetings. 'Steel firms are selling below cost to clear inventory and maintain cash flow, but the more we produce, the more we lose,' said Michael Cao, who owns a mid-sized steel company in the northern province of Hebei that employs over 100 workers. 'This is actually drinking poison to quench thirst,' he said. 'You may survive for now, but you'll ultimately need to rely on innovation and differentiated services for lasting change.' Advertisement However, Cao added, the massive amounts of funding required to upgrade factory infrastructure, coupled with shrinking demand, are keeping companies from pursuing innovation and distinguishing themselves in the market.