Taiwan is reportedly considering a ban on the export of artificial intelligence (AI) chips to all of China and violations could be classified as a crime, according to a Bloomberg report. Previously, only Huawei and SMIC were blacklisted, but smuggling chips into China is not considered a crime.
Also under consideration is the export limit on chips with certain power limits used by the United States. Only modified NVIDIA H200 chips are allowed, which are specifically developed for the Chinese market.
Although NVIDIA says its AI chip market in China is now zero, it only takes the left of legally exported chips. NVIDIA chips are still successfully smuggled in through Taiwan and Singapore. In March, three individuals with ties to Super Micro Computer Inc in Taiwan were indicted by the US Department of Justice for helping to smuggle at least $2.5 billion worth of AI technology into China.
Previously, TSMC chips were found in Huawei Ascend 910B AI chips, causing them to be fined by the United States. Smuggling through Johor was also successfully detected, causing MITI to now require permits even if AI navigators are only transiting within the country.
