South Africa faces Taiwan chip export curbs — A TSMC chip fabrication facility in Taiwan

Taiwan has imposed restrictions on semiconductor exports to South Africa, citing national security concerns and Pretoria’s alignment with Beijing, Bloomberg News reported on Tuesday.

The move underscores the geopolitical weight of Taiwan’s chip sector, which dominates global supply of advanced semiconductors through advanced chip foundry TSMC.

According to Bloomberg, Taiwan’s trade regulator now requires pre-approval for most chip exports to South Africa. Taipei’s decision followed pressure from Pretoria to downgrade Taiwan’s diplomatic presence, including moving its representative office from Pretoria to Johannesburg.

Taiwan’s foreign ministry said the request intensified after South Africa hosted the Brics summit in 2023 and is again pressing the matter ahead of November’s G20 meeting, which Chinese President Xi Jinping is expected to attend.

Taipei accused the South African government of undermining its sovereignty and national security, prompting the restrictions.

“We are adopting measures to restrict trade to maintain our sovereignty,” Taiwan’s International Trade Administration stated. Bloomberg noted that South African officials, including those from the foreign and trade ministries, did not respond to requests for comment.

‘Low risk’

The dispute highlights how Taiwan is increasingly using its economic leverage in global chip markets as a diplomatic tool amid mounting Chinese pressure. For South Africa, which severed formal ties with Taiwan in 1997, the timing is sensitive as it deepens relations with China.

In August, TechCentral reported that South Africa faced a “low risk” from Taiwan-related chip disruptions, citing the country’s relatively limited reliance on advanced semiconductors compared to other economies.

Most electronics sold in South Africa that contain Taiwanese semiconductors do not arrive directly from Taiwan. Instead, they are shipped as finished goods from countries such as China and India where the devices are assembled. This means Taiwan has little practical leverage to block chips once they are embedded in consumer products or industrial systems.

The automotive industry is also unlikely to face major disruption. Vehicle manufacturers and component suppliers typically procure semiconductors through large global distributors rather than buying directly from companies like TSMC. This insulates the sector from the risk of sudden export bans.

Craig Brunsden, CEO of Axiz, noted that any outright ban would affect not only South Africa but the broader Southern African region, which relies on shared supply routes.