Taiwan’s latest move to block chip exports to South Africa underscores the growing tension between the two nations.
This marks a rare instance where Taiwan uses its dominance in the semiconductor market as leverage over a country aligned closely with China.
Taiwan’s trade regulator said semiconductor exports to South Africa now require government approval, limiting sales for national security grounds after South Africa downgraded Taiwan’s diplomatic presence.
Taiwan’s crackdown on chip exports to South Africa
The dispute began after South Africa sought to downgrade Taipei’s representative office from the capital Pretoria to Johannesburg, a move Taiwan views as yielding to Chinese pressure.
Taiwan accused South Africa of ignoring appeals, cooperating with China to “exert pressure,” and taking steps that threatened Taiwan’s national and public security. As a result, Taipei announced a freeze on issuing permits for sophisticated chip exports until the situation resolves.
Taiwan’s semiconductor industry holds enormous weight globally, with nearly 90% of artificial intelligence systems relying on chips from Taiwan Semiconductor Manufacturing Company (TSMC).
South Africa’s technology and car industries depend on these chips, so that the export ban could hurt them. Due to China’s BRICS dominance, South Africa, a significant source of palladium, a semiconductor metal, is in a difficult geopolitical position.
Experts highlight that Taiwan’s chip industry has long been intertwined with global politics, with semiconductor access often used as a bargaining tool.
Taiwan’s unprecedented export controls on South Africa serve as a reminder of how strategic resources like chips play pivotal roles beyond mere technology, impacting diplomatic ties and economic security worldwide.
South Africa agreed to negotiations that temporarily halted export restrictions, demonstrating the delicate balance of high-stakes technology diplomacy.
This escalating conflict between Taiwan and South Africa illustrates the far-reaching influence of chip technology in international relations, particularly amid amplifying China-Taiwan tensions and shifting alliances on the African continent.