Taiwan to Criminalize AI Chip Exports to China Under New US-Aligned Controls

Taiwan is preparing to tighten export controls on artificial intelligence chips and servers, aligning with US restrictions and joining the Trump administration's crackdown on semiconductor smuggling to China. Taiwan's Minister of Economic Affairs Kung Ming-hsin told Bloomberg that Taipei plans to add AI servers and cutting-edge semiconductors to a list of controlled items, and that once the measures take effect, shipping restricted AI hardware to China will become a criminal offense under the Foreign Trade Act.

The move represents a significant escalation of Taiwan's stance, going beyond consideration of stricter rules to a formal commitment tied to a US trade arrangement. The new controls are intended to close loopholes that have allowed advanced chips, including Nvidia processors, to be smuggled into China despite existing US bans on such sales without Washington's prior approval.

The development is expected to heighten tech tensions between Taiwan and China, with potential ripple effects across global semiconductor supply chains and the broader US-China-Taiwan relationship.