Taiwan considers stricter export controls on AI chip sales to China to align with U.S. measures and address semiconductor smuggling

Taiwan authorities are considering much stricter export controls on AI chip sales to China, in an effort to give authorities more legal tools to address diversion of advanced hardware, like AI servers with Nvidia Corp. chips, from Taiwan to China.

Currently, Taiwan does not consider unauthorized AI chip exports to China to be a crime. While Taiwan authorities warn potential sellers they may be breaking U.S. rules, the only legal recourse available is to charge suspected smugglers with violations of other existing local laws.

Advanced AI chip sales to China are already banned under U.S. regulations unless companies obtain Washington's permission, curbs the U.S. first imposed in 2022 to prevent Beijing from using advanced Nvidia processors to gain a military edge.