TC Microchips: Taiwan Tightens Squeeze Export of Advanced Chip Tech To China

Taiwan has officially banned the export of critical know-how and raw materials to mainland China that are essential for producing advanced chips smaller than 14 nanometers, citing national security concerns. The move comes as Taiwan seeks to prevent Beijing from accessing cutting-edge semiconductor technology, which is now classified as one of 22 core technologies under strict control by the island’s National Science and Technology Council (NSTC).

Taiwan leads in semiconductor innovation

The export ban, which took effect immediately following its announcement on December 6, covers a wide range of sectors, including defense, aerospace, agriculture, semiconductors, and cybersecurity. Advanced chip-making expertise is a key focus, as Taiwan aims to safeguard its leadership in the semiconductor industry. According to Chen Kwo-liang, Director General of the NSTC’s Department of Foresight and Innovation Policies, the ability to produce chips smaller than 14nm can have wide-ranging applications, making it crucial to limit its transfer.

To reinforce these restrictions, Taiwan is also tightening control over the export of chip-making equipment, chemicals, and gases needed for sub-14nm processes. The decision follows a broader trend of technological protectionism, with Japan imposing similar export controls on 23 types of advanced chip-making equipment earlier this year.

The move also comes following China's major technological breakthrough, with Huawei Technologies’ launch of its Mate60 Pro smartphone in August, featuring a 7nm processor made by Shanghai-based Semiconductor Manufacturing International Corp (SMIC). This ignited speculation about the extent of China's domestic semiconductor capabilities.

Technology experts credit SMIC’s progress to N+2 technology, led by CEO Liang Mong-song, a former Taiwan Semiconductor Manufacturing Company (TSMC) executive. However, Taiwan’s ban underscores that mainland China still faces significant barriers in achieving full self-sufficiency in advanced chip manufacturing.

As tensions in the global semiconductor race escalate, Taiwan’s decision to block the export of sub-14nm technology highlights the strategic importance of the sector and the measures being taken to ensure that sensitive technologies remain under tight control. The NSTC plans to release an expanded list of restricted technologies in 2024, reflecting the island's commitment to protecting its commercial and national security interests in the face of growing competition from mainland China.