South Africa pushes Taiwan over the edge

Taiwan has imposed restrictions on the export of chips to South Africa over national security concerns, taking the unusual step of using its dominance of chip markets to pressure a country that’s closely allied itself with China.

Taiwan now requires pre-approval for the bulk of chips sold to the African nation, its trade regulator said in a statement.

The decision emerged after Pretoria tried to downgrade Taipei’s representative office and force its move to Johannesburg from the capital, Taiwan’s foreign ministry has said. 

The move reflects both the island’s economic clout and a growing frustration with getting sidelined by Beijing in the diplomatic community. Taiwan Semiconductor Manufacturing Co. makes the majority of the world’s most sophisticated chips, essential to cars, AI and industrial production.

South Africa started asking Taiwan to relocate its de facto embassy to Johannesburg from the administrative capital of Pretoria in 2023 after it hosted a BRICS summit that Chinese leader Xi Jinping attended, a Foreign Ministry official in Taipei previously told Bloomberg News.

South Africa is now ramping up that request as the country prepares to host the Group of Twenty leaders’ meeting in November that China’s president is also expected to attend. Pretoria severed diplomatic ties with Taiwan in 1997.

“The South African government’s actions have undermined our national and public security,” Taiwan’s International Trade Administration said in a statement. “We are adopting measures to restrict trade to maintain our sovereignty.”

TSMC representatives didn’t immediately respond to an emailed request for comment. South African foreign ministry spokesman Chrispin Phiri didn’t immediately respond to a text message requesting comment. A trade ministry spokesman didn’t immediately respond to messages seeking comment.