Taiwan to Tighten AI Chip Export Controls to China... Smuggling to Bring Criminal Penalties

Taiwan Joins U.S. Semiconductor Export Controls on China

In line with The Trump Administration's policy of restricting semiconductor exports to China, the Taiwanese government will add AI servers and advanced semiconductors to its list of controlled exports.

Taiwanese President Lai Ching-te speaks in Taiwan on the 15th. Reuters-Yonhap News Agency.

Kung Ming-hsin, Taiwan's Minister of Economic Affairs, said in an interview with Bloomberg published on Friday (local time), "As we made significant commitments in the reciprocal trade agreement with the United States, we will align some of our export control measures with U.S. measures going forward." He did not disclose when the measures would take effect.

The Taiwanese government plans to add AI servers and advanced semiconductors to its list of controlled exports. Once the measures take effect, exporting restricted AI semiconductors and other items to China will be subject to criminal penalties under the Foreign Trade Act. Currently, the unauthorized export of AI semiconductors to China is not itself a criminal offense in Taiwan, so authorities must rely on other existing laws to prosecute suspects accused of smuggling them.

The United States has long restricted the flow of advanced AI semiconductors made by Nvidia and AMD into China. However, concerns have grown about the effectiveness of export controls as Chinese companies have obtained restricted semiconductors through the black market. U.S. authorities have claimed that Nvidia products worth billions of dollars have been smuggled into China in recent years.

Taiwan's move is seen as an effort both to align with U.S. semiconductor restrictions on China and to protect its own technological competitiveness and national security. Taiwanese President Lai Ching-te has also previously said that he would address U.S. concerns related to export controls.

Bloomberg reported that the Taiwanese government has been considering legal measures since early this year to prevent advanced semiconductors from being rerouted to China. If the new regulations take effect, Taiwanese authorities will be able to directly prosecute the smuggling of AI semiconductors to China as a criminal offense.

Minister Kung also reaffirmed plans to accelerate the development of a semiconductor supply chain in the United States. He said the government plans to establish an industrial park in Texas worth up to $4 billion to help suppliers working with Nvidia, TSMC and Foxconn build production facilities in the United States. "We will build a long-term, sustainable supply chain locally that can involve not only Taiwanese companies but also U.S. companies and local workers," he said.

To that end, Taiwanese authorities plan to provide loan guarantees to suppliers seeking to set up in the industrial park. They will also help facilitate communication with U.S. government officials on a range of issues, from visas to land.

This content was produced with the assistance of AI translation services.