Taiwan plans to amend its Trade Act to bring "specific integrated circuits, key semiconductor wafer materials, components, and manufacturing equipment" under export controls, requiring prior approval to ship to mainland China. Violators could face up to 10 years in prison and fines of NT$5–10 million. Transshipment or resale via third locations ultimately destined for mainland China would face the same penalties, with proceeds confiscated.
Taiwan held a public hearing on the draft Trade Act amendment on November 2 to discuss the expanded controls. Critics argue the current system has a loophole—"manufacturing equipment cannot go, but key chips and derivative components can"—and want these items directly controlled. Taiwan's economic affairs authority said the Trade Act already authorizes the competent authority to announce export control lists and restricted regions, and it is studying expanding advanced semiconductor controls under the law, respecting the controls. Its head said in July that geopolitical changes warrant a full review of semiconductor equipment export restrictions to mainland China, but expansion affects industry rights and requires cross-departmental assessment.
Liu Meng-chun, a researcher at the Chung-Hua Institution for Economic Research, said the amendment aims to respond to US concerns over tech export controls on mainland China and is a declaratory policy of cooperation with allies. But with globalized semiconductor supply chains, such controls can only be "best-effort." He expects new control items to focus mainly on high-end chips with specific end uses, not a blanket ban on chip exports to mainland China, since mainland China can already produce mature-node chips itself.
ICgoodFind Summary: Taiwan plans to bring key materials, components, and manufacturing equipment under export licensing, closing the current loophole where "equipment is controlled but chips and derivative components are not." Academics expect new controls to focus on high-end chips and specific uses, not mature nodes, but licensing reviews for key materials and equipment could still affect cross-strait semiconductor supply chain delivery pace.
