TAIPEI (Taiwan News) — Minister of Economic Affairs Kung Ming-hsin (龔明鑫) warned Thursday that a proposed bill to tighten controls on overseas semiconductor expansion could weaken Taiwan’s technological edge and harm the economy.
Economic Daily News reported that the KMT plans to propose a “Chip National Security Act” as a priority bill in the new legislative session. The proposal would require legislative approval before advanced semiconductor technology developed in Taiwan can be used overseas and would limit the scale of overseas production.
Kung said Taiwan already has a review system for major outbound investments. He said multiple government agencies jointly assess national security risks, industrial impact, and other factors before projects are approved, CNA reported.
He said Taiwan has developed successfully for decades under the current system, per Yahoo News. “Creating a separate law with overly strict limits could produce negative effects and reduce Taiwan’s openness,” he said.
“If companies are barred from applying Taiwan-developed semiconductor technology in overseas factories,” Kung said, “they may shift research and development abroad.” He said firms may prefer to conduct research and development overseas if technology developed in Taiwan cannot be freely used in global markets.
He said Taiwan’s strength depends on keeping advanced technology, mass production capacity, profits, and research centers in the country. “If regulation forces research and development overseas, the semiconductor ecosystem that supports Taiwan’s industry would weaken and no longer function as intended,” he said.
KMT Councilor Tseng Hsien-ying (曾獻瑩), a former TSMC engineer, said the proposed bill is needed to keep Taiwan’s most advanced semiconductor processes in the country. He said it would stop high-end technology from moving overseas under geopolitical pressure or poor policy decisions, per Commercial Times.
“Recent alleged technology leaks have raised national security concerns,” Tseng said. He said the law would strengthen oversight and focus on prevention rather than post-incident investigations.
