Taiwan targets illicit AI server exports to China with prison terms

Taiwan is expanding its Foreign Trade Act to cover AI servers and semiconductors on its controlled-exports list. Violators face up to five years in prison.

Why it matters: Taiwan assembles a large share of the world's AI servers, so enforcement there closes a major diversion route around US export controls. It shifts the burden from Washington to the manufacturing hub itself, which could tighten China's access to restricted compute and raise the cost of gray-market supply.