Taiwan has announced new measures to protect its key technologies from being leaked or stolen, especially by its rival China. The island nation, which is home to some of the world’s leading chipmakers, said the new rules will not affect the normal operations of the industry.
Taiwan’s tech industry under threat
Taiwan is a global leader in semiconductor production, supplying chips to major companies like Apple, Qualcomm, and Nvidia. The industry is vital for Taiwan’s economy, as well as its national security and international status.
However, Taiwan’s tech industry faces increasing pressure from China, which claims the island as its own territory and has not ruled out the use of force to achieve reunification. China has been ramping up its military activities near Taiwan, as well as its economic and diplomatic coercion.
China has also been trying to lure away Taiwan’s tech talent and intellectual property, offering incentives and subsidies to Taiwanese companies and researchers to relocate to the mainland. China aims to reduce its dependence on foreign chips and become a self-reliant tech powerhouse.
Taiwan’s new tech protection measures
To counter China’s threats, Taiwan has introduced new regulations to safeguard its core technologies and prevent them from falling into the wrong hands. The measures include:
- Requiring companies that produce or use key technologies to report their activities to the government and obtain approval for any changes in their ownership, management, or business scope.
- Establishing a blacklist of entities that pose a risk to Taiwan’s tech security and banning them from accessing or acquiring key technologies.
- Enhancing the screening and monitoring of foreign investment and technology transfer in Taiwan’s tech sector.
- Strengthening the penalties for violating the tech protection rules, including fines, revocation of licenses, and criminal prosecution.
The new measures will take effect on January 1, 2024, and will cover technologies that are related to national security, public welfare, or industrial development. The government will publish a list of such technologies and update it regularly.
Taiwan’s reassurance to the chipmakers
Taiwan’s tech protection measures have raised some concerns among the chipmakers, who fear that they might face more red tape and restrictions in their business operations. The chipmakers rely on a global supply chain and a diverse customer base, and they do not want to be caught in the crossfire of the geopolitical tensions between Taiwan and China.
However, Taiwan’s government has assured the chipmakers that the new rules will not affect their normal operations or their competitiveness. The government said the measures are aimed at preventing the leakage or theft of key technologies, not at limiting the chipmakers’ market access or innovation.
The government also said it will consult with the industry and provide clear and transparent guidelines on how to comply with the new rules. The government said it values the chipmakers’ contribution to Taiwan’s economy and security, and it will support their development and growth.
