Why is Taiwan Rarely Announcing Restrictions on Chip Exports to South Africa

Taiwan restricts chip exports to South Africa due to national security concerns. South Africa has close ties with Beijing, and not long ago, South Africa forced Taiwan to relocate its representative office from Pretoria.

In a statement, Taiwan’s trade regulatory agency mentioned that most of the chips sold to South Africa now require prior approval. The decision came after South African authorities attempted to downgrade Taiwan’s representation in South Africa by forcing the office to move from Pretoria to Johannesburg and Cape Town.

The Taiwan Ministry of Foreign Affairs stated in a release that the South African Department of International Relations and Cooperation (DIRCO) unilaterally renamed Taiwan’s offices in South Africa in violation of diplomatic norms. This move led to a formal protest from Taiwan due to misinterpretation of UN Resolution 2758 and the “One China policy”.

On July 29th, the Director-General of the Asia-Pacific and Africa Department at Taiwan’s Ministry of Foreign Affairs, Yan Chia-liang, mentioned that Taiwan is considering countermeasures to protect its sovereignty and dignity, which may include restricting chip exports to South Africa and urging the South African government to engage in negotiations promptly.

According to a recent announcement from Taiwan’s Ministry of Economic Affairs, 47 types of products, including integrated circuits, chips, and memory chips, require approval before export to South Africa.

This action underscores Taiwan’s economic influence, particularly in semiconductor manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC) produces some of the most advanced chips globally, crucial for sectors like automotive, artificial intelligence, and industrial production.

In the past, a foreign ministry official in Taipei revealed to Bloomberg News that South Africa began pressuring Taiwan shortly after hosting a summit where Chinese President Xi Jinping attended in 2023, demanding the relocation of Taiwan’s office from Pretoria to Johannesburg.

South Africa is intensifying its pressure as it prepares to host the upcoming G20 summit in November, with Xi Jinping expected to attend.

“The actions of the South African government jeopardize our national and public security,” stated Taiwan’s International Trade Division of the Ministry of Economic Affairs. “We are taking measures to restrict trade to safeguard our sovereignty.”

Chrispin Phiri, a spokesperson for the South African Department of International Relations and Cooperation, claimed that South Africa maintains a non-political relationship with Taiwan. He emphasized the importance of platinum metals for the global semiconductor industry and South Africa’s economic diplomacy shifting towards strategic value addition.

“As the largest economy in Africa, South Africa aims to transition from extractive to value-added industries. This transformation will create resilient global supply chains and foster advanced, sustainable growth and job opportunities in South Africa,” Phiri elaborated.