Taiwan plans to tighten control over exports of advanced process technologies as well as outbound semiconductor investments, reports Economic Daily. The new legal measures will enforce the 'N-1' technology restriction, essentially barring TSMC from exporting its latest production nodes, and introduce penalties for violations— but there's a major catch for TSMC.
The 'N-1' policy, confirmed by Premier Cho Jung-tai, will apply to TSMC's planned production in the United States. This approach restricts export of the most advanced process technology, allowing only one generation older to be deployed abroad.
Before this amendment, Taiwan's regulations did not explicitly require such controls for semiconductor manufacturing processes. These rules are based on Article 22 of the amended Industrial Innovation Act, which is expected to take effect by the end of 2025.
