Taiwan is considering tighter export restrictions on advanced artificial intelligence (AI) chips and servers shipped to China, signaling closer cooperation with the United States in efforts to prevent semiconductor technology from reaching restricted markets.
According to a Bloomberg report published Friday, citing people familiar with the discussions, Taiwanese authorities are evaluating stronger regulations to combat AI chip smuggling and unauthorized exports of high-performance computing equipment.
The proposed measures would primarily target advanced AI servers equipped with Nvidia chips, which are widely used to power artificial intelligence applications and data centers. Officials are reportedly seeking additional legal authority to investigate and prevent the diversion of sensitive semiconductor technology from Taiwan to China.
The potential restrictions reflect growing concerns over China's access to advanced AI hardware despite existing U.S. export controls. Washington first introduced significant restrictions on AI chip shipments to China in 2022, aiming to limit Beijing's access to cutting-edge computing technology.
However, reports suggest that sophisticated Nvidia AI chips have continued entering China through unauthorized supply networks, including alleged smuggling operations involving Southeast Asian countries.
One major case involved employees of U.S. server manufacturer Super Micro Computer, who were implicated in a Department of Justice investigation into the alleged illegal transfer of at least $2.5 billion worth of Nvidia chips to China.
The investigation also implicated Super Micro co-founder Yih-Shyan Liaw, who was arrested by U.S. authorities in connection with the alleged operation. Nvidia employees based in Taiwan were separately implicated in another reported chip-smuggling network.
Taiwan's consideration of stricter AI chip export controls could further complicate relations with Beijing, which has repeatedly criticized Washington's semiconductor restrictions as an attempt to contain China's technological development.
The proposed policy would also reinforce Taiwan's strategic importance in the global semiconductor supply chain, particularly as demand for advanced AI processors and computing infrastructure continues to expand.
Although Taiwanese authorities have not announced a final decision, tighter regulations could increase compliance requirements for technology companies involved in AI server manufacturing and semiconductor exports.
The discussions highlight growing efforts by Taiwan and the United States to strengthen oversight of advanced chip shipments while limiting China's access to restricted artificial intelligence technologies.
