Taiwan moves to curb AI chip exports to China under US deal

Taiwan will limit exports of AI chips to China as part of a deal with the United States. The world’s most important chipmaking island is now formally lining up with Washington on who gets the good silicon. What Taiwan is changing In June 2026, the Taiwanese government signaled plans to restrict sales of advanced AI chips to all Chinese customers. That is a meaningful step up from the old approach. Previously, the restrictions centered on specific blacklisted names, with Huawei being the best known. The new plan widens the net from a list of named companies to an entire country’s customer base. The proposal also enables criminal penalties for chip smuggling for the first time. Moving chips through back channels shifts from a regulatory headache to something that can land people in court. Taiwan’s Ministry of Economic Affairs confirmed in June 2026 that it was in ongoing consultations with the US on advanced chip rules. In May 2026, Taiwan detained its first known AI chip smugglers under new policy measures, and further legal actions followed by October 2026. How we got here Taiwan’s move builds on US export restrictions put in place in 2022, which were designed to limit China’s mili...