Taiwan's government will introduce an amendment to the Foreign Trade Act to criminalise unauthorised chip exports to China before the end of 2026.

Prosecutors this week indicted a Nvidia Taiwan manager and eight others for allegedly smuggling AI servers to China, exposing a loophole where such exports only draw fines rather than the five-year prison terms applied to other restricted destinations. A DPP lawmaker has pushed a fix since June, but passing it is another matter: the KMT-led opposition controls the legislature and has consistently obstructed national security-related bills, so the amendment is far more likely to be tabled than enacted this year.