Taiwan Weighs Sweeping New AI Chip Export Controls on China, Aligning with US Rules

Bloomberg reported June 9, 2026 that Taiwanese authorities are considering significantly stricter export controls on AI chip sales to China, aiming to align enforcement with US regulations first imposed in 2022. The proposal under review would extend restrictions beyond blacklisted firms like Huawei to cover all PRC customers for the first time, and — critically — would make unapproved exports a criminal offense with jail time, closing a legal gap that currently allows unauthorized diversion of advanced hardware (such as AI servers built with Nvidia chips) from Taiwan to China without criminal penalty. The move follows growing scrutiny of Taiwan-based server makers amid semiconductor smuggling concerns.