Taiwan has imposed new restrictions on the export of semiconductors to South Africa, citing national security concerns in a move that underscores the island’s growing willingness to leverage its dominance in the global chip market amid rising geopolitical tensions.
The Taiwanese trade regulator announced that exporters will now require pre-approval for most chip shipments to South Africa. This marks a rare instance of Taiwan using its strategic position in the semiconductor supply chain to exert pressure on a country that has increasingly aligned itself with China.
The decision follows South Africa’s push to downgrade Taiwan’s representative office in Pretoria and relocate it to Johannesburg, a move Taiwan’s Ministry of Foreign Affairs views as politically motivated and indicative of Beijing’s growing influence in Africa’s diplomatic landscape.
Taiwan’s response reflects both its economic clout and mounting frustration over being diplomatically sidelined. The island is home to Taiwan Semiconductor Manufacturing Co. (TSMC), which produces the majority of the world’s most advanced chips used in everything from automobiles and artificial intelligence to industrial systems.
South Africa began pressuring Taiwan to relocate its diplomatic mission in 2023, shortly after hosting a BRICS summit attended by Chinese President Xi Jinping. The pressure has intensified ahead of the upcoming G20 leaders’ summit in November, which Xi is also expected to attend. South Africa formally severed diplomatic ties with Taiwan in 1997, maintaining only informal relations.
In a statement, Taiwan’s International Trade Administration said:
The South African government’s actions have undermined our national and public security. We are adopting measures to restrict trade to maintain our sovereignty.
Responding to the restrictions, South African Foreign Ministry spokesperson Chrispin Phiri reiterated that the country’s relationship with Taiwan is non-political, emphasizing South Africa’s strategic role in the global semiconductor supply chain.
South Africa is a critical supplier of platinum group metals, such as palladium, which are essential to semiconductor manufacturing. Our economic diplomacy is shifting toward deeper integration in global value chains.
Phiri added that South Africa is moving beyond its traditional role as a raw material exporter, aiming to build advanced industries domestically.
This means transforming raw materials into high-value products. It’s a pivot that secures more resilient supply chains globally and unlocks sustainable growth and job creation at home.
The episode highlights the complex interplay between technology, diplomacy, and economic strategy, as countries navigate shifting alliances and supply chain vulnerabilities in an increasingly multipolar world.
