Taiwan's cable companies can no longer use semiconductors from China in TV boxes

In a further blow to Huawei, National Communications Commission reveals Taiwanese companies are shopping in Europe, US for chips and wafers

(Photo from HiSilicon)

(Photo from HiSilicon)

TAIPEI (Taiwan News) – Taiwan’s National Communication Commission (NCC) has just adopted new restrictions on cable TV box components which will forbid the use of semiconductors or wafers manufactured in China.

According to a South China Morning Post report, Taiwan will no longer allow components sourced from China to be used in broadcast equipment marketed by cable TV companies in Taiwan, in line with the country’s National Cyber Security Management Act.

The restrictions are further bad news for the Chinese telecom giant, Huawei, which is struggling to maintain output and sales, following the critical blow of being placed on a U.S. market “blacklist” by the Trump administration on May 15.

Taiwan began drafting its own similar ban of blacklisted Chinese companies back in January, with bans on Huawei products for government offices and critical national infrastructure announced in March, which is when the NCC began informing Taiwanese companies of the new restrictions.

Huawei owns the company HiSilicon, which until the ban, had been the primary source for chips and wafers among cable providers in Taiwan. Currently, there are no cable boxes or related devices being marketed in Taiwan with Chinese components.

The NCC source quoted in the SCMP report states that Taiwanese companies will henceforth seek out components from U.S. and European manufacturers to meet demand.

In addition to banning Chinese-manufactured components from use by the domestic broadcast industry, the Taiwanese government has also increased scrutiny of online Chinese streaming platforms, which the Mainland Affairs Council cautions, may serve as platforms for propaganda and social influence from Beijing.

As China and Chinese telecom companies struggle to deal with the ongoing U.S. trade war, Taiwanese industries are eyeing opportunities to form new trade partnerships with foreign companies, as domestic companies also work towards decoupling from the Chinese economy.