TAIPEI (Taiwan News) – Taiwan has begun drafting legal amendments to tighten AI chip export controls to China following concerns over potential illicit transfers, Economics Minister Kung Min-hsin (龔明鑫) said on Wednesday.
Speaking at a legislative committee session reviewing the 2026 central government budget, Kung said the Ministry of Economic Affairs has already initiated revisions but must coordinate with multiple agencies before finalizing the changes. He noted the process involves national security bodies, the National Science and Technology Council, and the Ministry of Finance, per CNA.
The move comes after lawmakers raised alarms over reports that US-based Supermicro may have been involved in the illegal transfer of Nvidia AI chips to China. DPP Legislator Chung Chia-pin (鍾佳濱) questioned why only 12 categories of strategic high-tech goods are currently restricted from export to China.
Bureau of Foreign Trade Director-General William Liu (劉威廉) said those restrictions were originally designed to protect Taiwan’s industrial competitiveness. Chung argued that while Taiwan has historically both cooperated and competed with China in semiconductors, it has long barred exports of advanced wafer manufacturing equipment to prevent technology leakage.
Citing the Foreign Trade Act, Chung noted that exporting strategic high-tech goods to controlled regions can carry prison sentences of up to five years, while violations involving non-controlled regions incur fines ranging from NT$60,000 (US$1,850) to NT$3 million (US$92,600). He questioned why China is not explicitly listed as a controlled destination for chip exports.
Kung reiterated that revising the law requires cross-agency consensus and cannot be decided by the ministry alone. He added that determinations on which chips should be regulated must involve scientific authorities, while enforcement involves customs and trade oversight agencies.
After the session, Kung told reporters that corresponding measures on AI chip exports to China are certain and will be implemented as quickly as possible. He emphasized that national security considerations are central to the timeline and scope of the reforms, per the Economic Daily News.
