Bloomberg reported on the 9th (local time) that Taiwan is reviewing a plan to comprehensively tighten export controls on artificial intelligence (AI) semiconductors to China as part of its trade talks with the United States.
According to the report, Taiwanese authorities are discussing strong export control measures that would restrict sales of AI chips not only to specific corporations such as Huawei that are on the export blacklist, but to all customers in China.
If the new measures take effect, Taiwan would for the first time be able to bring criminal charges for smuggling AI chips into China. This is expected to be among the most sweeping steps to protect Taiwan's technology security and national interests since the Lai Ching-te administration took office.
In particular, it would have an immediate impact on Taiwanese firms that assemble Nvidia chip processors into servers. Earlier, Taiwanese authorities were said to have arrested a semiconductor smuggling suspect last month on charges of document forgery.
Taiwan is reported to have agreed to follow the U.S. approach by restricting sales to China of AI chips that exceed certain performance thresholds. It would be similar to the U.S. method of blocking sales to China of chips that surpass specific performance criteria.
However, the specific scope and criteria are still being fine-tuned, pending final review and approval by senior officials of both countries.
Taiwan's Ministry of Economic Affairs said it would strengthen oversight of "strategic advanced technology products" in line with international export control standards. Taiwan and the United States are consulting on issues such as matters involving advanced chips under regulatory controls.
The move is likely to trigger a strong backlash from China. When Taiwan previously blacklisted China's Huawei and Semiconductor Manufacturing International Corp. (SMIC), China's largest foundry, the Ministry of Foreign Affairs strongly condemned the conduct of the Taiwanese authorities.