Stricter Controls on AI Chip Exports to China: Economic Minister Says Legal Revisions Underway and Will Be Expedited

Central News Agency Report

(CNA reporter Hsieh Yi-hsuan, Taipei, June 17) Allegations that U.S.-based Supermicro illegally transferred NVIDIA's artificial intelligence (AI) chips to China have prompted Taiwanese legislators to call for stricter controls on AI chip exports to China. On the 17th, Economic Minister Kung Ming-hsin stated that the Ministry of Economic Affairs (MOEA) has already begun revising relevant laws and will handle the matter as quickly as possible. However, he noted that because the issue involves national security and multiple agencies—including the National Science and Technology Council (NSTC) and the Ministry of Finance—cross-ministerial discussions are required, and final decisions will take time.

Today, the Legislative Yuan's Economic Committee reviewed the non-commercial portion of the 2026 (Fiscal Year 115) central government budget, specifically the budget items under the MOEA's jurisdiction. Minister Kung, along with Director-General Liu William of the International Trade Administration and other officials, attended the session to answer questions.

Democratic Progressive Party (DPP) legislator Chung Chia-pin questioned whether senior executives at Supermicro were involved in the illegal transfer of NVIDIA's AI chips to China. He expressed concern that only 12 strategic high-tech items—such as chemical mechanical polishing equipment and photoresist stripping machines—are currently restricted from export to China.

In response, Liu William explained that the original restriction on these 12 items was intended to protect Taiwan's industrial competitive advantage.

Chung further pointed out that in the past, Taiwan and China had a competitive yet cooperative relationship in the semiconductor wafer sector. Taiwanese firms would export chips to China for assembly and then sell the finished products to the U.S., while simultaneously preventing China from acquiring advanced wafer manufacturing technology by banning the export of manufacturing equipment.

Chung noted that Article 27 of Taiwan's Trade Act stipulates up to five years in prison for exporting strategic high-tech goods to restricted regions. Article 27-2 imposes fines of between NT$60,000 and NT$3 million for exports to non-restricted regions. However, he questioned why China is not designated as a restricted region for chip exports.

Kung explained that the MOEA has already begun revising relevant laws. However, because the revisions involve national security and the responsibilities of multiple agencies, inter-ministerial discussions are necessary before any final decision can be reached.

In a post-session interview, Kung emphasized that because the legal revisions involve national security, they cannot be decided solely by the MOEA. While the MOEA is the implementing and supervising agency for the Trade Act, the scope of the revisions extends beyond its jurisdiction, requiring in-depth discussions with other agencies. For example, export controls and trade activities involve the Customs Administration under the Ministry of Finance, and the NSTC must determine which types of chips should be subject to controls.

Regarding export controls on AI chips to China, Kung stated that appropriate measures will be taken and handled as quickly as possible. (Edited by Lin Shu-yuan) 1150617