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Taiwan is moving to implement much stricter export controls on artificial intelligence chips and servers destined for China, closely aligning its semiconductor policies with Washington. The upcoming measures will grant Taiwanese authorities critical legal tools such as criminal penalties under the Foreign Trade Act to actively prosecute unauthorized chip smuggling and diversion rings. The initiative follows recent investigations involving black-market shipments of high-performance Nvidia and AMD hardware through regional intermediaries into mainland China. The policy shift stems from broader bilateral coordination, including commitments made under the U.S.–Taiwan trade pact and efforts to build a localized U.S. semiconductor supply chain.