Taiwan Moves to Criminalize AI Chip Smuggling to China Under Foreign Trade Act

Taiwan is formalizing its stance on the illicit transfer of high-end computing hardware to China. Minister of Economic Affairs Kung Ming-hsin announced on October 12 that the government intends to add AI servers and advanced semiconductors to the list of items controlled under the Foreign Trade Act. DPP legislator Chung Chia-pin spearheaded this legislative push through a proposed “mainland China semiconductor chip clause.” Taiwanese prosecutors currently lack a specific criminal offense for AI chip smuggling under the Foreign Trade Act. This enforcement gap complicates legal proceedings when authorities interdict unauthorized shipments. While existing strategic-high-tech-goods rules allow for penalties of up to five years imprisonment, the absence of a dedicated provision for AI-specific hardware creates a gray area that smugglers exploit.

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