Taiwan Moves to Criminalize AI Chip Smuggling, but No Timeline Is Set

Taiwan intends to add AI servers and advanced semiconductors to the list of controlled goods under the Foreign Trade Act and create a dedicated criminal offense for unauthorized shipments to China, but it has not yet set the product list, technical thresholds or implementation date, according to a Forkast report published on October 17.

Forkast reported that the proposed amendment aims to align Taiwan's export controls with US restrictions, fulfilling Taiwan's commitments under the 2026 Agreement on Reciprocal Trade, citing Minister of Economic Affairs Kung Ming-hsin.

The amendment, spearheaded by DPP legislator Chung Chia-pin, remains a proposed change that requires approval by the Legislative Yuan before it can take effect.

Forkast reported that Taiwanese prosecutors currently lack a specific criminal offense for AI chip smuggling under the Foreign Trade Act, complicating legal proceedings when authorities interdict unauthorized shipments, although existing strategic high-tech goods rules allow for penalties of up to five years in prison.

What do these terms mean?

Foreign Trade Act: A law regulating the export and import of goods and technologies, granting the government authority to impose restrictions on sensitive products.

Semiconductors: Electronic chips that power computers, phones, and AI systems, made from semiconductor materials such as silicon.

Export Controls: Rules specifying goods and technologies that require a license before being sold or shipped to specific countries or entities.