Taiwan has implemented comprehensive regulations to prevent the transfer of sensitive technologies, including advanced chips, to mainland China, reinforcing national security and economic interests.
On December 31, 2024, the Executive Yuan officially announced an expanded list of national core and critical technologies prohibited from being transferred to China, effective immediately. Violators, including companies and individuals, will face severe criminal penalties. The newly expanded list includes advanced technologies such as high-bandwidth density small-chip interconnect circuit design and millimeter-wave gallium nitride (GaN) power amplifier monolithic microwave IC chips.
This announcement followed the statutory notice period for the broader list of national core and critical technologies proposed by the National Science and Technology Council (NSTC) based on the National Security Act and the Regulations on the Designation of National Core Critical Technologies.
In compliance with Article 10, Paragraph 1 of the Regulations on the Designation of National Core Critical Technologies, relevant authorities are required to review the list of critical technologies annually. As of 2024, all 32 technologies overseen by the NSTC, the Ministry of Economic Affairs (MOEA), the Ministry of National Defense, the Ministry of Digital Affairs, and the Council of Agriculture have been included in the newly promulgated list.
The government's decision to tighten controls stems from repeated incidents of unscrupulous manufacturers and former employees succumbing to lucrative offers from Chinese companies. These individuals have acted as economic spies, selling Taiwan's vital technological know-how to China at low prices.
Stricter oversight implementation
A notable example occurred in February 2021, when Hestia Power Inc., a silicon carbide (SiC) chip design company jointly invested in by the Industrial Technology Research Institute (ITRI) and Hermes-Epitek Corp., was unexpectedly disbanded. Key technologies and personnel subsequently moved to Shanghai Hestia Power in China.
This incident prompted the Mainland Affairs Council, national security agencies, the MOEA, and the NSTC to strengthen regulations on critical technologies. In June 2022, amendments were made to the National Security Act and the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area, imposing harsher penalties for the theft of trade secrets related to national core critical technologies.
In December 2023, the NSTC announced the first batch of 22 controlled technologies, followed by a second batch of 10 additional technologies in December 2024. This expanded list reflects Taiwan's competitive edge in specific areas and highlights the need for robust protective measures to prevent incidents like the Hestia Power case from recurring. Technologies and talent funded by more than 50% of government resources, such as those from ITRI or the Taiwan Space Agency (TASA), now require prior government approval before engaging with China.
The second batch of controlled technologies identified by the NSTC's National Core Critical Technology Review Committee includes low-temperature semiconductor chip circuit design and manufacturing processes, silicon carbide (SiC) semiconductor manufacturing for high-voltage power components, quantum bit design and manufacturing technologies, and GaN semiconductor manufacturing for high-frequency power amplifiers.
Furthermore, Taiwan is advancing the development of cost-effective, reliable, and low-risk orbital rockets, offering a contrast to China's high-risk, large-scale rockets. Consequently, technologies such as propulsion system design and manufacturing for orbital launch vehicles capable of deploying small satellites and flight attitude determination, as well as control technologies for such vehicles have also been designated as national core and critical technologies.