Taiwan Considers Strict AI Chip Export Bans to China

The Government of the Republic of China is considering the imposition of stricter export controls on artificial intelligence chip sales to all customers in mainland China. These proposed regulations aim to align Taiwan's trade policy with existing United States measures and provide legal tools to criminalize the smuggling of advanced hardware, such as Nvidia-powered servers, which are currently only punishable under general laws.

The Ministry of Economic Affairs and Climate Policy confirmed that consultations with Washington are ongoing to finalize processing power thresholds for these curbs. This potential policy shift follows the 2025 blacklisting of Huawei Technologies and SMIC, reflecting a broader trend toward more assertive national security policies under the administration of President Lai Ching-te.

Industry stakeholders and analysts have expressed concern over the potential impact. Critics argue the move primarily serves U.S. interests and risks hollowing out Taiwan's semiconductor sector. Additionally, firms such as Gigabyte Technology and Asustek Computer face increased corporate compliance costs, and the primary chipmaker, TSMC, maintains significant revenue links to mainland Chinese clients.