Taiwan takes aim at China with draft laws on chip sector espionage

'Economic espionage' would carry up to 12-year prison sentence

Taiwan has accused Chinese companies of "infiltrating" the island's chip supply chain, a cornerstone of its economy. © AFP/Jiji

LAULY LI and CHENG TING-FANG, Nikkei staff writers

February 17, 2022 14:57 JST

TAIPEI -- Taiwan is preparing to introduce tougher laws to protect the island's crown jewel semiconductor industry from Chinese industrial espionage.

The Executive Yuan on Thursday approved draft amendments to the National Security Act that would make it a crime to engage in "economic espionage" or the unapproved use of critical national technologies and trade secrets outside of Taiwan. Sentences would be set at up to 12 years and 10 years in jail, respectively.