The Minister for Economic Affairs, Kung Ming-hsin, has confirmed that AI servers and cutting-edge semiconductors are to be added to the list of controlled goods, via an amendment to the Foreign Trade Act.
Taiwan is set to significantly tighten its controls on technology exports. Economic Affairs Minister Kung Ming-hsin has confirmed that the most advanced AI servers and semiconductors will join the list of controlled goods. An amendment to the Foreign Trade Law, drafted by Democratic Progressive Party lawmaker Chung Chia-pin, will introduce a specific clause for chips destined for mainland China: their unauthorized shipment will no longer be a simple administrative offense, but a criminal offense. The details of the penalties have not yet been made public.
Beyond the Huawei–SMIC blacklist
Until now, the island has been content since mid-2025 with a blacklist targeting Huawei and SMIC by name. The new system targets all Chinese buyers. It is an extension of the trade agreement reached on January 15 with Washington, which reduced US tariffs on most Taiwanese products from 20% to 15%, in exchange for a commitment of $250 billion in investments in semiconductors, energy and AI in the United States, accompanied by $250 billion in credit guarantees.
The commercial stakes remain considerable: before the restrictions, Nvidia earned about $17 billion from its sales in China, and AMD made 24% of its revenue there in 2024.
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