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Taiwan Limits AI Chip Exports to China

Taiwan's Ministry of Economic Affairs has announced plans to limit exports of advanced AI chips to all Chinese customers, a move that expands from previous targeted restrictions on specific companies. The new policy includes criminal penalties for chip smuggling for the first time, and follows US export restrictions designed to limit China's military capabilities. The move is part of a broader US-Taiwan free trade agreement signed in January 2026, which includes $250 billion in investments into US semiconductors and AI technology.

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