Taiwan is considering restrictions on AI chip exports to all companies in China, aligning with the United States, which has banned exports of artificial intelligence chips, according to a foreign news report.
Bloomberg reported Tuesday, citing sources, that Taiwanese authorities are weighing a ban on exports to China of advanced hardware such as AI servers equipped with Nvidia chips.
As part of ongoing trade negotiations with the United States, Taiwanese authorities are reportedly considering AI chip control measures that would limit sales not only to blacklisted firms such as Huawei but to all customers in China. If implemented, the measure would give Taiwan the legal means to impose criminal penalties for unauthorized AI chip exports to China. Currently, Taiwanese authorities can warn companies that exports may violate U.S. regulations, but legal punishment requires applying other charges of legal violations.
If Taiwan's AI chip restrictions are realized, they are likely to provoke a backlash from China. When Taiwan blacklisted Huawei and SMIC, China's largest chipmaker, last year, a spokesperson for China's Ministry of Foreign Affairs strongly criticized the move, saying the "Democratic Progressive Party authorities kneeling and flattering the United States will only harm and ruin Taiwan's interests."
Bloomberg assessed that Taiwan's industry, which occupies one pillar of the global AI ecosystem, would also fall within the scope of impact. Taiwan, which accounts for the majority of global AI chip manufacturing, is home to numerous companies that assemble Nvidia processors into servers. As a result, the industry is also expected to closely monitor the regulatory movement and react sensitively.
