[News] Taiwan Reportedly Mulls Tighter AI Chip Export Rules on China Beyond Huawei, Raising Risks for Server Makers

As Washington continues to tighten restrictions on AI chip exports to China and related entities, its allies are also considering similar steps. According to Bloomberg, Taiwan is weighing significantly stricter controls on AI chip shipments to China in a move to further align with US measures.

The proposed rules would give Taiwanese regulators greater legal authority to curb the diversion of advanced hardware, including AI servers powered by NVIDIA chips, from Taiwan to China, Bloomberg notes.

Bloomberg adds that the sweeping export controls under consideration would extend beyond blacklisted firms such as Huawei to cover all customers in China, potentially for the first time. According to Tom’s Hardware, since blacklisting Huawei and SMIC last June, Taiwan has required export licenses for shipments to both firms, but the broader Chinese market remains outside the scope of those restrictions.

Key Details Take Shape

Though key details are still being worked out, a source cited by Bloomberg suggests Taiwan has broadly agreed to align with the US framework and is expected to restrict exports of AI chips exceeding certain performance thresholds to China.

Tom’s Hardware explains that the US defines those limits through Total Processing Performance (TPP), a metric used to regulate AI accelerators. Since January, chips below 21,000 TPP and 6,500 GB/s memory bandwidth — roughly equivalent to NVIDIA’s H200 and AMD’s MI325X — have been eligible for case-by-case export licenses to China, while more advanced chips remain restricted, the report says.

As noted by Tom’s Hardware, the potential impact could be substantial given Taiwan’s dominance in global AI server production, with Foxconn, Quanta, Wistron, Wiwynn, and Inventec assembling NVIDIA and AMD-based systems deployed in data centers worldwide. While TSMC is already barred from making advanced AI chips for Chinese customers, current rules do little to stop servers containing those chips from reaching China through downstream channels, the report points out.

Taiwan Strengthens High-Tech Export Oversight

According to TechNews, responding to the market speculation of tighter AI chip export controls, Taiwan’s Ministry of Economic Affairs (MOEA) said on June 9 that it will continue strengthening oversight of strategic high-tech exports in line with global export-control trends to safeguard national security. The ministry, as per the report, added that senior officials from Taiwan and the US are continuing discussions on issues including controls on advanced chips.

Separately, Taiwan’s International Trade Administration (ITA) expanded its Strategic High-Tech Commodities Entity List, adding 265 entities linked to weapons proliferation across China, Russia, Iran, Mexico, Turkey, and the UAE, while removing 13, TechNews reports, adding that exports to listed entities now require prior approval from the ITA.

Read more

• [News] U.S. Moves to Block AI Chip Exports to Overseas Chinese Units as Loophole May Have Fueled Large Shipments
• [News] U.S. Reportedly Mulls Tiered AI Chip Export Rules, 200K+ Units Need Investment, Official Assurances

(Photo credit: NVIDIA)