Chinese companies Huawei and SMIC may have difficult times to reach the resources required to create AI chips due to Taiwanese export control.

Bloomberg reports that Taiwan’s International Trade Administration Two companies and their subsidiaries placed in an updated list of institutions Nominated as strategic high -tech items. This means that Taiwan’s businesses will need government approval before shipping anything in any company.

As a result, Huawei and SMIC will lose access to Taiwan’s plant construction technologies, materials and equipment, potentially establish China’s efforts to develop new AI semiconductors, call Bloomberg.

The trade administration said in a statement, “On June 10, we add some 601 institutions from Russia, Pakistan, Iran, Myanmar and Mainlands China, including Huawei and SMIC, which include the unit list to combat arms spread and address other national security concerns.”