Yesterday, May 20th, 2022, Taiwan’s Legislative Yuan, passed a new law that hopes to prevent countries hostile to the nation from obtaining important technologies from Taiwan.
The new law would administer fines of between NT$5 million and NT$100 million. The convicted of such crimes could also be jailed for up to 12 years.
The amendment also fines those that steal information relating to confidential business with a fine of 2 to 10 times the amount made from said stolen information.
Those residing in foreign counties that use stolen technologies will be fined NT$5 to 50 million. They will also face prison sentences of between 3 and 10 years.
People who have or are receiving funding from the Taiwanese government to develop key technologies, and the employees of companies that are receiving or have received such funds, will be prevented from visiting China.
For those that are no longer receiving such funding, they will be prohibited from traveling to China, unless they obtain express permission from the Taiwanese government. This requirement subsides three years after such funding has ended. Those that flaunt these rules will be fined NT$2 to 10 million.
Chinese companies, or their branches outside the country, they will be barred from doing business in Taiwan. There is a carveout for entities that have created subsidiaries in Taiwan. Those found in violation could face penalties of up to NT$15 million and 3 years in jail.
The bill is an amendment to the National Securities Act that was enacted to prevent transfer of technologies that are key to Taiwan’s economic stability and security. These laws are mostly focused on preventing sale or transfer to China.
This comes amidst constant attempts by China to steal Taiwanese technologies, especially those related to the semiconductor industry. Taiwan controls a huge share of the semiconductor market globally, over 60 percent.
This move also comes as China is struggling to maintain COVID zero policies, putting some strains upon its manufacturing capabilities. This protectionism and China’s struggles could potentially lead to even more exaggerated profits for Taiwanese semiconductor companies, namely TSMC.
Though Taiwan’s recent decision to ‘let COVID rip’ could also pose issues with supply chains and the workforce that we have seen in countless countries around the world that have decided to “live with COVID.”