Taiwan's National Security Law Protects TSMC Trade Secrets Amid Global Tensions

Taiwan's government has invoked its National Security Law to protect the trade secrets of Taiwan Semiconductor Manufacturing Company, or TSMC, in response to heightened global tensions and concerns over technology transfer.

This action follows the departure of Taiwanese engineer Wei-Jen Lo, who after 21 years at TSMC, joined Intel, prompting an investigation by Taiwanese authorities due to potential national security threats.

The Taiwanese government has taken significant steps, including raiding Lo's homes and seizing his assets, marking the first use of a 2022 law that allows chip makers' trade secrets to be protected on national security grounds.

Additionally, Taiwanese prosecutors recently indicted the local unit of Tokyo Electron, a supplier to TSMC, for failing to prevent a former employee from stealing sensitive information, underscoring the seriousness of protecting semiconductor technologies, which are vital to Taiwan's economy and international competitiveness.

This legal framework highlights Taiwan's proactive stance to safeguard its semiconductor industry amid increasing global competition and geopolitical tensions, particularly concerning Chinese technology transfer efforts.

As the global semiconductor landscape evolves, Taiwan's unique position as a leading chip producer is under intense scrutiny, with implications not just for its national security but also for the broader tech industry worldwide.