Why Taiwan quickly reversed its South Africa chip ban
Taiwan has lifted a short-lived ban on semiconductor exports to South Africa, retreating from a measure that risked unsettling global chip supply chains and undermining confidence in its flagship industry.
Taiwan’s government announced the curbs earlier this week amid a diplomatic row over Pretoria’s treatment of Taipei’s de facto embassy. South Africa, under pressure from Beijing, has demanded that Taiwan relocate its representative office out of the capital, Pretoria, a move Taipei has resisted, the African Business reports.
By Friday, however, the restrictions were withdrawn. Taiwan’s foreign ministry said Pretoria had agreed to hold talks on the issue. At the same time, analysts suggested Taipei acted to avoid politicising chip trade in ways that could damage trust in Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker and a linchpin of global electronics.
South Africa’s foreign ministry accused Taiwan of trying to “disrupt the stability of the global supply chain.” Analysts warn that while the immediate impact on South Africa’s tech sector is limited, its auto industry, heavily reliant on imported chips, could be exposed if tensions flare again.
“The message from Taiwan is that South Africa should remember they have substantial power over semiconductors,” said Menzi Ndhlovu, senior analyst at Signal Risk in Cape Town. Trade volumes are modest, with Taiwan being South Africa’s 25th-largest partner, but highly strategic, with few substitutes available.
The Centre for Risk Analysis in Johannesburg estimates that Taiwanese entrepreneurs own more than 450 factories in South Africa, employing about 40,000 people.
The flare-up comes as South Africa navigates fraught foreign relations, including worsening ties with Washington. Analysts warn that inconsistent diplomacy could jeopardise access to key trade agreements such as the U.S. African Growth and Opportunity Act (AGOA), while deterring foreign investment.
China, which claims Taiwan as its own territory, has long pressed African allies to downgrade or sever relations with Taipei. The episode highlights how Beijing’s pressure campaigns and Taiwan’s semiconductor dominance are converging to shape not only Asian geopolitics but also African economies.
This story is written and edited by the Global South World team, you can contact us here.
