Exclusion from US AI export curbs will boost confidence for Taiwan AI: Government

The Taiwan government is upbeat that the exclusion from the US curbs on AI chip and technology exports will be a major confidence booster to the Island’s AI industry.

This follows recent US announcements of new AI regulations that include restrictions on exports of AI chip technology to certain jurisdictions like China, Russia, Iran, and North Korea. The restrictions will also help the US keep the latest and most advanced computing power to itself and its allies.

America’s friends like Taiwan can still access US AI tech

Taiwan’s government has revealed the exclusion from the restrictions will also “give confidence” about Taipei’s controls and respect for the law.

The Biden administration has proposed new restrictions on the export of advanced computer chips used to develop AI. This is part of an effort to preserve America’s six-to-18-month advantage on AI over rivals such as China.

According to the new measures announced on Monday, US allies like Taiwan are safe from the restrictions that will affect several global companies that rely on US technology for their AI developments.

The proposed measures have also reportedly raised concerns of chip industry executives who opine the rules would limit access to existing chips used for video games and restrict 120 countries to the chips used for data centers and AI products.

But Taiwan is safe. Its Economy Ministry said that Taiwan’s inclusion as a “tier one” partner, which allows it unlimited access to US AI tech, “should give confidence about our government’s management and controls and companies’ respect of the law.”

The Ministry added that it had continued to invite officials and industry professionals from the US to visit Taiwan to help companies “understand relevant regulatory laws and trends” amid the ongoing US restrictions on AI technology since 2022.

The island is home to the world’s largest contract chipmaker, TSMC. The company is also a huge supplier of chips to US chip-making giant Nvidia.

Latest measures to worsen Taiwan’s relationship with some Chinese firms

Taiwan already has strict rules and regulations around exports of AI technology to China. According to a Reuters report, the island has repeatedly said it will enforce US restrictions. In 2024, TSMC cut shipments to a Chinese company known as Sophgo after one of TSMC’s chips was found to have been illegally used in a Huawei AI processor.

Huawei, a Chinese telecommunications equipment maker and tech giant, was sanctioned by the US in 2019 for activities contrary to US national security and foreign policy interests.

In November last year, TSMC reportedly emailed its Chinese market to alert them of its intention to halt production of AI chips at advanced process nodes of 7 nanometers or smaller.

The email stated that shipment of 7nm and below processes will be stopped at the beginning of November 11.

According to wccftech, this supply disruption would affect only firms that leverage TSMC’s technology for AI, smartphones, and automobile chips.

However, other companies that do not fall under the affected categories can still have the AI chips produced for them but will require a license.

This decision, the wccftech report says, will also have an adverse impact on the firm’s revenues, although chances are high that the US companies will pick after the Chinese firms immediately after. This will enable the chipmaking firm to offset the losses.

The export restrictions come at a time when Taiwan has been seeing a steady growth in exports, especially to the US. Apart from Nvidia, Taiwanese firms like TSMC are also major suppliers to Apple and other tech giants. Demand for AI products has been growing as the tech continues to gain traction on a global scale due to its transformative abilities

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