TAIPEI (TVBS News) — Taiwan will protect its technological edge by applying the strategic "N-1" regulation to Taiwan Semiconductor Manufacturing Corporation (TSMC, 台積電) latest U.S. investment, National Development Council (NDC, 國發會) Minister Liu Chin-ching (劉鏡清) confirmed Wednesday (March 12).
During a Legislative Yuan (立法院) session, Minister Liu emphasized the government's "unwavering commitment" to national security by ensuring Taiwan retains its most advanced semiconductor technologies while older generations are permitted for overseas transfer. "The government's position is clear — we must safeguard our latest and most critical technologies," Liu stated during questioning from lawmakers.
The issue sparked debate when Kuomintang (KMT, 國民黨) Legislator Wang Hung-wei (王鴻薇) raised concerns about consistency in policy application, specifically questioning whether the same "N-1" rules that previously governed TSMC's China investments should apply equally to U.S. ventures.
Premier Cho Jung-tai (卓榮泰) reinforced the government's stance, noting that all companies must adhere to relevant regulations when investing abroad. He revealed that discussions with Economic Affairs Minister J.W. Kuo (郭智輝) and NDC Minister Liu have consistently prioritized the "N-1" rule as a cornerstone policy.
The statements came during a full committee meeting convened to discuss proposed amendments to the Fiscal Revenue and Expenditure Division Act put forward by the Executive Yuan (行政院). The "N-1" strategy represents Taiwan's delicate balancing act—maintaining crucial technological leadership while navigating complex international partnerships in the increasingly competitive global semiconductor landscape.