Taiwan to Curb AI Chip Sales to China for More US Alignment, Bloomberg Reports

3-line summary

• Taiwan is considering much stricter export controls on AI chip sales to China, Bloomberg reported citing anonymous sources, aimed mainly at stopping AI servers containing Nvidia chips from being diverted from Taiwan to China. The article did not specify the exact scope, item criteria, or timing, and no final measure has been confirmed.
• Context cited: the move is meant to give authorities stronger legal tools against diversion of advanced hardware amid smuggling risks, and is part of broader alignment with US policy — the US has restricted AI chip exports to China since 2022, which China has objected to.
• The article cited reported smuggling cases routed through Southeast Asia; a Super Micro Computer employee has been implicated in a US Justice Department investigation into smuggling roughly $2.5 billion worth of Nvidia chips to China, with one co-founder arrested, and a Taiwan-based Nvidia employee was also reportedly linked to a smuggling ring. Companies named: Nvidia (NVDA) and Super Micro Computer (SMCI); Taiwan's broader AI-server supply chain could also be affected, though the article did not detail this. The report said the move could further provoke Beijing.

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