Taiwan weighs criminal penalties for AI server exports after alleged diversion

The proposal surfaced in June after U.S. prosecutors accused Supermicro co-founder Wally Liaw and two others of helping route about $2.5 billion in servers to China.

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Primary source: Tom's Hardware

Why it matters

Taiwan's proposal would give authorities an export-control charge for covered hardware, addressing alleged diversion schemes that U.S. prosecutors say used intermediaries and inspection gaps. Its reach depends on the final controlled-goods list and effective date.

Unmarked server equipment sits inside an open cargo container as workers inspect a shipment at a Taiwan port.

Taiwan's June proposal to make unauthorized exports of advanced AI servers and chips a criminal offense followed a U.S. case alleging that Supermicro co-founder Yih-Shyan "Wally" Liaw helped divert restricted servers to China. The proposal would give Taiwan prosecutors a direct export-control charge for shipments of covered hardware, with penalties of up to five years in prison and a fine of up to NT$3 million.…

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