SPAIN-TELECOM-INTERNET-AI-ECONOMY-MWC
A schematic diagram of AI accelerator chips and high-performance computing devices. The Taiwanese government is considering tightening export controls on AI chips and is also considering including AI servers and advanced semiconductors in the scope of control; specific items and implementation timelines are still pending official announcement by the competent authorities.

Taiwan is considering tighter export controls on artificial intelligence (AI) chips and related hardware, including potentially adding AI servers and advanced semiconductors to the list of controlled items to strengthen efforts to prevent restricted high-end technology products from reaching China. If formally implemented, the policy would affect export compliance for Taiwanese technology companies, cross-border supply chain management and Taiwan-US technology trade cooperation.

According to a report by the Central News Agency on Oct. 16, Economic Minister Kung Ming-hsin told Bloomberg News that Taiwan was preparing to tighten export controls on AI chips, with the measures to align with some US restrictions. The government was considering adding AI servers and advanced semiconductors to the export-control list, but had not announced a specific implementation timetable at the time.

Kung said Taiwan had made certain commitments under arrangements related to the Taiwan-US reciprocal trade agreement, and that some future controls would be aligned with those of the United States. If the new rules take effect, the shipment of controlled AI hardware to China could be subject to penalties under relevant provisions of Taiwan's Trade Act.

At present, Taiwan still faces regulatory and enforcement limitations in dealing with some unauthorized exports of AI chips. One purpose of the proposed revisions is to clarify controls on exports of advanced semiconductors and related equipment, while strengthening action against illicit transshipment and smuggling.

Taiwan plays an important role in the global AI supply chain, covering advanced chip manufacturing, server assembly, circuit boards, cooling systems and related components. If export controls are expanded, companies may need to conduct more stringent checks on end users, end uses, transshipment locations and counterparties, raising compliance and supply-chain screening costs.

From the perspective of global technology competition, the United States continues to restrict the flow of some advanced computing chips and related technologies to China. If Taiwan further adjusts its export rules, coordination between Taipei and Washington on high-end technology export controls will attract greater attention. The measures could also make it more complicated for companies to process cross-border orders and conduct business in the China market.

For Taiwanese companies, the key issues will include not only which products are added to the controlled list, but also the effective date of the new rules, licensing procedures, scope of application and liability for violations. Before the formal regulations are announced, companies should continue to handle exports in accordance with current laws and closely monitor announcements from the Ministry of Economic Affairs and the relevant trade authorities.

As of the time of the CNA report, the government had not announced a formal implementation date for the new measures. The final controlled-items list and regulatory amendments officially announced by the competent authorities should serve as the basis for compliance; the proposal under consideration should not be treated as already in force.