Newsletter
Announcement of National Core Key Technologies
The Taiwan National Security Act (NSA) was amended in 2022 to strengthen the protection of trade secrets related to national core key technologies and to ensure national security and an industrial competitive advantage. According to Article 3, Paragraph 1 of the NSA, "[A] person may not engage in the following acts for a foreign country, Mainland China, Hong Kong, Macau, foreign hostile forces, or various organizations, institutions, or groups established or substantially controlled by them or the persons dispatched by such organizations, institutions or groups: 1. Obtaining trade secrets of national core key technologies by way of theft, embezzlement, fraud, duress, unauthorized reproduction, or other improper methods, or using and disclosing them after obtaining them. 2. Without authorization or beyond the scope of authorization, reproducing, using or disclosing the trade secrets of national core key technologies that are known to or held by him. 3. Failing to delete, destroy or conceal the trade secrets of national core key technologies that are held by him, after the owner of the trade secrets has informed him that such trade secrets should be deleted or destroyed. 4. Obtaining, using or disclosing the trade secrets of national core key technologies with the knowledge that such trade secrets known to or held by others have the circumstances under the preceding three paragraphs." Moreover, Article 3, Paragraph 2 of the NSA stipulates that "[A] person may not intend to engage in any of the acts under various subparagraphs of the preceding paragraph by using trade secrets of national core key technologies in a foreign country, Mainland China, Hong Kong or Macau."
The aforementioned national core key technologies are determined by the National Science and Technology Council, with the participation of experts from industry, government, academia, and research in accordance with Article 3, Paragraph 3 of the NSA, with the aim of preventing significant harm to national security, industrial competitiveness, or economic development caused by the outflow of important technologies to foreign countries, Mainland China, Hong Kong, Macau, or hostile forces overseas. Such technologies shall also meet at least one of the following criteria: 1. Controlled technologies based on international conventions, defense needs, or considerations for the security of national critical infrastructure; 2. Technologies that can promote the development of leading technologies domestically or can significantly enhance the competitiveness of important industries.
The Executive Yuan announced the first list of National Core Key Technologies on December 5, 2023, focusing on defense technology, space, agriculture, semiconductors, and information security, and totaling 22 items:
1. Military carbon fiber composite material technology;
2. Military Carbon/Carbon High Temperature and Ablation Resistant Material Technology;
3. Military New Anti-Interference Identification of Friend or Foe Technology;
4. Military microwave/infrared/multimode calibration technology;
5. Military active phased array (phased array) detection technology;
6. Dynamic pressure engine technology;
7. Satellite control technology;
8. Space specification X-Band image download technology;
9. Space specification image compression electronic unit (EU) technology;
10. Space specification CMOS image sensor technology;
11. Design, manufacturing, and integration technology of space specification optical payload systems;
12. Space specification active phase array antenna technology;
13. Space specification passive reflector antenna technology;
14. Space specification radar image processing technology;
15. Agricultural variety cultivation and reproduction, aquaculture technology - liquid state bacterial culture technology, aquaculture parthenogenesis technology;
16. Agricultural biochip technology - Agricultural drug residue detection technology, animal and plant pathogen detection biochip technology;
17. Expert System Technology for Agricultural Facilities - Design, Operation, and Maintenance Management of Water Environment in Crop Greenhouses, Aquaculture and Fisheries Expert System Technology;
18. Manufacturing technology for chips (ICs) with processes of 14nm and below, as well as key gas, chemical, and equipment technologies;
19. Heterogeneous Integrated Packaging Technology - Wafer Level Packaging Technology, Silicon Photon Integrated Packaging Technology, and Its Special Necessary Materials and Equipment Technology;
20. Chip security technology;
21. Post quantum cryptography protection technology; and
22. Network Active Defense Technology.
The National Science and Technology Council and relevant ministries will continue to solicit opinions and review the list of National Core Key Technologies in response to changes in technological development. It is possible that a further list of the National Core Key Technologies will be announced in March 2024. The Ministry of Economic Affairs (MOEA) will also conduct a check on the projects commissioned or subsidized by the MOEA by more than 50%, and the personnel involved in core key technologies must apply for review and obtain approval before going to Mainland China.
According to the authorities, the determination of national core key technologies is to prevent the illegal outflow of important technologies and avoid harm to national and industrial interests, and is not intended to affect normal and legitimate business activities or technology exchanges, or to impact the business operations of industries in China. Nonetheless, it is advisable for industries and relevant personnel to pay special attention to the relevant provisions of the NSA and further developments in determination of National Core Key Technologies to avoid legal violations and criminal liability.