Taiwan Tightens Chip Exports To South Africa As Diplomatic Rift Deepens

South Africa has found itself at the sharp end of Taiwan’s economic power after Taipei announced new restrictions on the export of semiconductors. The decision comes in the wake of Pretoria’s renewed push to downgrade Taiwan’s presence in the country, a move widely seen as aligning more closely with Beijing.

Taiwan Uses Its Tech Clout

Taiwan’s International Trade Administration confirmed that chip exports to South Africa will now require pre-approval, citing national security concerns. This is no small measure. Taiwan, through giants like TSMC, produces the bulk of the world’s most advanced chips that power everything from smartphones and AI systems to cars and medical equipment.

By leveraging this dominance, Taipei is sending a clear message: while China may isolate Taiwan diplomatically, it still holds the upper hand in global supply chains.

South Africa’s Pressure Tactics

The fallout began when Pretoria pushed for Taiwan’s representative office to be relocated from Pretoria to Johannesburg. According to Taiwanese officials, South Africa first floated this request after hosting the 2023 BRICS summit, where Chinese President Xi Jinping was a central figure. With Johannesburg set to host the G20 summit in November and Xi expected to attend, Pretoria appears eager to avoid diplomatic friction with Beijing.

South Africa severed formal ties with Taiwan back in 1997, but Taipei has maintained a representative presence in the country. That arrangement is now under strain.

Pretoria Defends Its Position

South African officials have tried to downplay the row, stressing that relations with Taiwan remain “non-political.” Foreign ministry spokesperson Chrispin Phiri pointed to the country’s role in the semiconductor value chain, highlighting platinum group metals such as palladium that are crucial to chipmaking.

“South Africa is moving beyond being just a raw materials supplier,” Phiri said. “Our strategy is to build advanced industries at home, which will make us a stronger, more resilient partner in global value chains.”

Why This Matters

At its core, the spat is more than just about an office move. It’s a reflection of shifting power dynamics in a world where minerals, chips, and diplomacy are increasingly intertwined. South Africa may supply the metals that make chips possible, but Taiwan still controls the manufacturing know-how. For Pretoria, the challenge will be to prove that its push for industrial transformation can keep pace in a world where technology and politics collide.

{Source:Business Tech }

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