For years, Taiwan has viewed its dominance in supplying countries with cutting-edge chips as a shield from Chinese aggression. Now, officials are testing out semiconductors as a diplomatic sword.
On Tuesday, Taipei for the first time unilaterally imposed semiconductor export controls on a country, limiting shipments to South Africa for actions that ¡°undermined our national and public security.¡± That marked the latest twist in a long-running spat over the nation¡¯s efforts to weaken ties with Taiwan ¡ª a key demand of Beijing from its formal partners.
Taipei¡¯s chip curbs reflect its strategy to increasingly use economic and trade policy for diplomatic goals, according to a Taiwanese official familiar with the matter. Similar measures could be imposed on other unfriendly nations, the person added, asking not to be identified discussing sensitive issues.
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