The move means that these two major players behind Beijing’s AI and chip ambitions will now require Taiwanese export permits to obtain any equipment manufactured on the island. That includes not just TSMC, but a long list of top-tier players, such as UMC, ASE, SPIL, and Nanya.

While the US has already imposed sanctions on Huawei and SMIC, Taiwan’s decision cuts off another vital artery for Chinese firms hoping to access advanced technology. The island, often referred to as the Silicon Shield, is home to the world’s leading chipmakers and is critical to the global supply chain.

This latest slap-down follows reports that Huawei used shell companies to sneak past the rules and trick TSMC into building two million compute chiplets for its banned Ascend 910 AI processors. Naturally, someone in Taipei seems to have decided enough is enough.

Taiwan’s blacklist already includes the likes of the Taliban, al-Qaeda, and the usual rogue gallery of firms from Iran, North Korea, and Russia. Not quite the elite tech club Huawei once claimed to lead.

Neither Huawei nor SMIC has commented, which probably means they’re still trying to work out how to explain this to the party bosses. Taiwan’s economy ministry has also kept schtum, although Bloomberg and CNA have confirmed the new restrictions are real and in force.

The move likely follows behind-the-scenes grumbling about that embarrassing episode with TSMC and two million rogue chiplets. The US had already told the chip giant to stop feeding China anything clever, and Taiwan’s thrown the whole menu in the bin.

With Trump back in the White House and the West ramping up its tech cold war, Taiwan wants to show it’s on side and ready to play hardball. Any hope Huawei had of charming its way back into the world’s fabs is now looking cooked.