Taiwan Blacklists Huawei and SMIC: New Export Controls Ripple Through Crypto Mining Industry

Taiwan has ramped up its tech export controls by adding Huawei and SMIC to its restricted entities list, a move that further isolates China’s chip giants from crucial semiconductor technologies. This decision, aligned with US-led policy, is poised to reshape not just global chip supply chains but also the backbone of cryptocurrency mining.

Taiwan Expands Blacklist Amid Intensifying Tech Rivalries

The Ministry of Economic Affairs in Taiwan has updated its Strategic High-Tech Commodities Entity List, formally blacklisting Huawei Technologies, Semiconductor Manufacturing International Corp (SMIC), and their subsidiaries. Going forward, Taiwanese exporters must secure government approval before supplying any products to these companies. The measure aims squarely at curbing China’s access to advanced semiconductors needed to compete with US tech powerhouses like Nvidia, as geopolitical competition over chipmaking escalates.

Huawei and SMIC, which have not released public statements regarding their inclusion, now face new hurdles in sourcing the cutting-edge semiconductors essential to their operations and broader ambitions of technological self-sufficiency.

Global Tensions and the Push for Chip Sovereignty

The new export controls unfold against a backdrop of complex cross-strait relations and US-China tech friction. While Beijing maintains claims over Taiwan and has issued threats of military force, the US and its allies, though recognizing the “One China” policy, oppose any forced annexation. The policy update by Taiwan not only reinforces previous US-driven bans but also closes loopholes that allowed some collaboration to persist between Chinese and Taiwanese firms.

Both Huawei and SMIC have been at the forefront of China’s efforts to achieve chipmaking autonomy, especially after Huawei made headlines in 2023 with its domestically produced 7-nanometer chip powering the Mate 60 smartphone. That breakthrough spurred renewed scrutiny on export controls in Washington and prompted further diplomatic pressure on Taiwan and its key industry leaders, including TSMC, to restrict access to advanced technologies from mainland Chinese buyers.

Key Stats & Figures

• New Entity List Inclusions: Huawei, SMIC, and multiple subsidiaries are now subject to Taiwanese export approval.
• 7-Nanometer Chip Milestone: Huawei’s Mate 60, launched in 2023, used China’s first domestically developed advanced chip.
• Role in Crypto Mining: ASIC chips, critical for Bitcoin mining, require advanced semiconductor manufacturing—often reliant on Taiwanese technology.
• Industry Pressure: The US has strongly encouraged partners like TSMC to withhold advanced chipmaking capabilities from mainland China.

Semiconductor Shortages Threaten Bitcoin Mining Landscape

Semiconductors are the backbone of the crypto mining sector, especially for Bitcoin. Most mining operations employ application-specific integrated circuits (ASICs) built for the high-speed computational demands of the SHA-256 algorithm. With Taiwan’s controls limiting Chinese firms’ access to leading-edge chips, the production of competitive mining hardware could be constrained, potentially raising costs and slowing innovation for miners worldwide.

Conclusion: What This Means for the Market

Taiwan’s decision to tighten semiconductor export rules and blacklist China’s top chipmakers has reverberated throughout the global technology and crypto mining landscapes. As access to world-class chips becomes more restricted, the stakes are rising for both state actors and private industry. The ongoing battle for semiconductor dominance will likely continue to shape innovation, market competition, and geopolitical alliances in the rapidly evolving cryptocurrency ecosystem.