Taiwanese prosecutors have indicted 10 individuals for smuggling U.S.-made military-grade chips to China. The defendants used forged documents from the National Chung-Shan Institute of Science and Technology to bypass export restrictions on high-speed components used in radar, electronic reconnaissance, and missile systems.
The illicit operation involved three groups of distributors who falsely declared U.S., Thai, Philippine, and South Korean chips as being manufactured in Taiwan. These parts were then routed to companies in Hong Kong or mainland China. The primary defendants generated profits ranging from TWD 92.75 million to TWD 135.83 million.
The charges against the suspects include forgery, fraud, and violations of the Money Laundering Control Act, with prosecutors seeking prison sentences between 2 and 10 years. Authorities have also requested the confiscation of all illicit gains, citing the significant threat these actions pose to national security and international trade relations.
While Taiwan lacks specific laws criminalizing the breach of U.S. export controls, the defendants face prosecution under local trade and forgery statutes. The government is currently considering further amendments to the Foreign Trade Act to tighten oversight on high-tech exports and address gaps in existing regulations.
