Taiwan is introducing stricter export controls on AI servers destined for China, including potential five-year prison sentences for violators. The government is expanding the Foreign Trade Act to align its measures with U.S. policies, following a reciprocal trade agreement signed earlier this year.
The trade deal involved the U.S. reducing tariffs on Taiwanese goods to 15 percent in exchange for direct investments in the American tech sector. This regulatory shift follows a high-profile investigation involving Super Micro, where three employees were accused of smuggling AI servers valued at $2.5 billion.
Taiwanese authorities previously conducted a raid on Super Micro’s Taipei offices regarding the smuggling of Nvidia B300 chips. This operation resulted in the indictment of nine individuals. Previously, Taiwan lacked specific legislation to criminalize such exports, often relying on alternative legal frameworks.
