Taiwan`s Legislative Yuan has enacted a ban on the export of advanced technologies to other countries.
This new law is scheduled to take effect by the end of 2025. Under its regulations, Taiwanese companies, including the leading semiconductor manufacturer TSMC, will be prohibited from producing goods utilizing the most recent process nodes and technological developments. Additionally, the government will gain the authority to withdraw investments made in other countries if such investments are deemed detrimental to Taiwan`s economic growth or pose a threat to national security.
These updated rules specifically encompass the United States, where TSMC had previously announced plans to invest $100 billion in manufacturing facilities. While these restrictions may influence those specific investment plans, they do not forbid the production of goods using process technologies that are one generation less advanced than the absolute latest. Consequently, TSMC is permitted to continue the build-out of its factories in the United States, unless the Taiwanese authorities issue a separate, explicit prohibition against it.
Finley Holt