Taiwan moves to tighten control over TSMC's advanced chip exports and overseas investments

The big picture: Taiwan is moving to strengthen its grip on advanced semiconductor technology and overseas investments, signaling a significant shift in how the country manages its critical chip industry. Lawmakers have passed amendments to the Industrial Innovation Act, introducing strict new controls over the export of cutting-edge process technologies and outbound investments by semiconductor companies, most notably TSMC. At the heart of the new measures is the so-called "N-1" rule, which prohibits companies from exporting their most advanced semiconductor manufacturing technology. Instead, only technology at least one generation behind what is available domestically can be deployed in overseas facilities. Premier Cho Jung-tai confirmed this policy, which will directly affect TSMC's planned expansion in the United States and ensure that the company's latest innovations remain within Taiwan's borders. Previously, Taiwan's regulations did not explicitly restrict the export of advan ... Read full article.