Taiwanese authorities have detained three people after accusing them of stealing technology trade secrets from Taiwan Semiconductor Manufacturing Co., according to multiple reports. The Taiwan High Prosecutors Office said Taiwan detained the people late last month after a TSMC internal investigation revealed that former and current employees had illegally obtained information from the company, Reuters reported. TSMC fired the workers, who allegedly stole sensitive chip technology, Nikkei Asia reported.
Export Compliance Daily is providing readers with the top stories from last week, in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The U.S. last week arrested and accused two Chinese nationals of using a California-based company to illegally export tens of millions of dollars' worth of advanced AI semiconductors to China, including by first transshipping the chips through Malaysia and Singapore.
U.S. allies, including in Europe, may back away from their plans to de-risk from China if they continue to see the Trump administration use export controls as a bargaining chip in trade negotiations with China, a panelist said during an event this week hosted by the Center for a New American Security. Others said they’re skeptical about the sustainability of the trade deals announced by the U.S. last week, especially those that commit other countries to large purchases of American goods.
The U.K. this week revised its Russia-related sanctions evasion guidance to update its list of countries and items that pose high risk of sanctions circumvention.
The Trump administration plans to maintain strict China-related export controls on the most advanced semiconductors and chip manufacturing equipment, a senior White House official said last week, adding that the U.S. also doesn’t plan to automatically greenlight all H20 chip exports to China.
Senate Banking Committee ranking member Elizabeth Warren, D-Mass., and Sen. Mike Rounds, R-S.D., a member of the committee, urged the Trump administration July 31 to reinstate provisions of the recently rescinded AI diffusion export control rule that are designed to discourage U.S. companies from offshoring critical AI infrastructure and ensure that the technology that is exported is not misused.
China's Cyberspace Administration is probing U.S. semiconductor firm Nvidia after raising concerns that the company's chips may be equipped with features to track the location or potentially shut down H20 chips sold in China, the agency said July 31, according to an unofficial translation.
The Trump administration appears to be avoiding new China-related controls on sensitive semiconductor manufacturing equipment because it fears those restrictions could impede a trade deal, a technology policy researcher said this week. Other researchers said the administration isn’t using its chip bargaining power correctly, adding that the U.S. should be getting more for the deals it has made so far with Gulf nations and potentially others in the future.
Senate Foreign Relations Committee ranking member Jeanne Shaheen, D-N.H., asked the Trump administration July 30 to provide more information about its decision to allow Nvidia to sell H20 AI chips to China, including what “guardrails” it has put in place to ensure that the exports don’t help modernize the Chinese military.