Taiwan's Ministry of Economic Affairs (MOEA) announced on June 15, 2025, that it had added 601 entities—including Chinese tech giants Huawei and SMIC—to its export control list, citing concerns over weapons proliferation and national security. The regulation requires Taiwanese firms to secure export licenses before supplying to any listed company. Optical component suppliers such as Largan Precision and Genius Electronic Optical (GSEO) downplayed the impact, saying their operations remain unaffected.
Cross-agency review targets military diversion
Taiwan's Bureau of Foreign Trade convened a cross-agency review to update the export control list, aiming to prevent the diversion of sensitive technologies for military use. Released on June 10, 2025, the revised list names 601 entities from countries including Russia, Pakistan, Iran, Myanmar, and China—among them Huawei and SMIC.
The MOEA reiterated that domestic firms must obtain a strategic high-tech export license from the Bureau of Foreign Trade before exporting to blacklisted entities. Taiwan Customs will enforce the policy at the border, halting any unauthorized shipments.
Suppliers already China-focused
Largan, a past supplier of smartphone camera lenses for Huawei, declined to comment on individual client orders.
GSEO confirmed it supplies Huawei but noted that shipment volumes are limited, with most of its business tied to US-based clients. It added that all of its smartphone lens modules are manufactured in China, placing them outside the scope of Taiwan's new export rules.
Several Taiwanese optical firms, not just those linked to Huawei or smartphones, have long adopted a "made in China, sold in China" model. Like GSEO, they bypass international export restrictions and tariffs while minimizing exposure to China's rare earth export controls.
Industry shift predates new restrictions
Industry sources said that, amid growing global restrictions on Huawei, many Taiwanese suppliers, including those beyond optics, have already reduced shipments to Huawei and other Chinese smartphone brands to mitigate risk. At the same time, China has been ramping up support for its domestic optical supply chain, with Sunny Optical Technology emerging as a key player.
Sources added that it's becoming more difficult for Taiwanese optical companies to set up manufacturing in China, where local vendors benefit from substantial government subsidies, reportedly "shockingly high." The optical sector is also under pressure from intensifying internal competition and overcapacity.
Sunny Optical previously noted that accelerating deglobalization, domestic overcapacity, and heightened competition are driving consolidation in China's optics industry. These dynamics, the company said, are increasing the need for innovation, operational efficiency, and organizational resilience.
Article edited by Jerry Chen
