Taiwan's semiconductor industry is shifting from a defensive to an offensive stance, with the Ministry of Economic Affairs' International Trade Bureau confirming that over 600 entities from China, Russia, Iran, and Myanmar will be added to its export control list, including major Chinese tech firms like Huawei and SMIC, effectively serving as a 'birthday gift' to the leaders of the U.S. and China.

In a recent interview published by the People's Daily, Huawei founder Ren Zhengfei acknowledged that the U.S. has exaggerated the threat posed by Huawei, admitting that China's chip development is still one generation behind, while emphasizing that the current technology is sufficient for practical use. NVIDIA founder Jensen Huang interpreted this as meaning that the current capabilities are already adequate for China.

Furthermore, Huawei's ambitions extend beyond this, as South Korean media reports indicate that the company has direct or indirect control over at least 11 wafer fabrication plants in China, with a total of around 20 facilities when including R&D centers. Japanese media also notes that Huawei is consistently extending its reach, not only in upstream materials and equipment but also in downstream manufacturing and sales; it has been recruiting talent from Taiwan, Japan, and South Korea to position its newly established Zhuhai Base Technology as a top global supplier of semiconductor materials, on par with leading companies like Shin-Etsu Chemical.