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

Taiwan has invoked its National Security Law to protect the trade secrets of Taiwan Semiconductor Manufacturing Company, or TSMC, amid rising tensions with China. In July, TSMC engineer Wei-Jen Lo transitioned to Intel, prompting Taiwanese prosecutors to investigate, viewing it as a potential threat to national security.

Authorities raided Lo's homes and seized his assets, marking a significant use of the 2022 law aimed at safeguarding chip technology, essential for Taiwan's economy. This law is being enforced as Taiwan seeks to maintain its lead in semiconductor manufacturing, crucial for global technology supply chains.

In December, Taiwan indicted the local unit of Japanese supplier Tokyo Electron for failing to prevent the theft of TSMC's advanced chip designs, marking a first under the National Security Act regarding semiconductor trade secrets.

The Taiwanese government emphasizes that the protection of these technologies is vital for maintaining the international competitiveness of its chip industry, which supplies a significant portion of the world's advanced computer chips.