Taiwanese officials are exploring tougher export regulations on advanced artificial intelligence technology destined for China to mirror American trade restrictions, Bloomberg News reported on Tuesday, citing people familiar with the matter.
This initiative aims to combat semiconductor smuggling, a move that could potentially provoke a diplomatic backlash from Beijing, the newswire said.
The updated framework would grant local regulators stronger legal mechanisms to intercept the illicit rerouting of high-end Nvidia servers, the publication said.
Currently, local prosecutors are limited by narrow legal boundaries, making it difficult to pursue cases beyond straightforward document forgery charges, the report said.
Under the proposed trade-talk updates, restrictions would expand broadly to all mainland buyers rather than just blacklisted entities like Huawei, the news agency said.
Consequently, this policy shift would allow Taiwan to criminally prosecute unauthorized AI chip diversions for the very first time, it added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)