Taiwan weighs tighter rules for AI chip exports to China

Taiwan is considering tighter export controls on artificial intelligence chips bound for China as it moves to align more closely with U.S. restrictions.

The measure is intended to give Taiwanese authorities more legal tools to stop advanced hardware, including AI servers equipped with Nvidia chips, from being routed through Taiwan and into China.

If adopted, the move could draw a sharp response from Beijing.

The United States has restricted exports of advanced AI chips to China since 2022, requiring U.S. companies to obtain government approval before selling certain products to Chinese customers. Washington has said the rules are intended to prevent China from using advanced Nvidia processors to gain a military advantage.

Taiwanese officials are reviewing a broader AI semiconductor control plan as part of ongoing trade talks with the United States, Bloomberg reported, citing people familiar with the matter.

The proposal would expand sales restrictions beyond specific blacklisted companies, such as Huawei, to cover all customers in China.

If the plan is implemented, Taiwan would be able to treat the smuggling of AI chips into China as a criminal offense, similar to the US approach.

The proposed rules could place additional compliance burdens on Taiwanese companies including Gigabyte and Asus, which assemble Nvidia-based servers. Those firms may need to strengthen business management and monitoring systems to comply with the new restrictions.

Taiwan’s Ministry of Economic Affairs said it will continue strengthening oversight of strategic high-tech items to better align with international export-control regimes.

The ministry said Taiwan and the United States are continuing consultations on issues including whether to include advanced semiconductors among regulated items.

China is expected to strongly oppose any new restrictions. Last year, after Taiwan added Huawei and Semiconductor Manufacturing International Corp., China’s largest chipmaker, to its export-control blacklist, China’s Foreign Ministry accused the Democratic Progressive Party government led by Taiwan President Lai Ching-te of damaging Taiwan’s interests by aligning with Washington. UPI