Following the case of former TSMC senior vice president Wei-Jen Lo taking sensitive company data, Taiwan's Ministry of Justice has proposed amendments to strengthen the National Security Act and close legal loopholes. The incident, involving alleged theft of TSMC's sub-2nm process technology and Lo's subsequent employment at Intel in the US, has been classified by the government as a violation concerning core national technologies.
After TSMC filed a lawsuit, some of Lo's assets were seized by court order. Intel CEO Lip-Bu Tan is scheduled to deliver a keynote speech at Computex on June 2, 2026, where media attention may focus on Lo's suspected crimes and flight to the US.
Lo faces charges including violating the National Security Act, infringing on critical national technology, and economic espionage. The investigation remains ongoing. In response, Taiwan's Judicial Yuan and Ministry of Justice have decided to revise the National Security Act, with a second public hearing set for March 26 at the Legislative Yuan.
The Ministry of Justice's draft amendments aim to enhance the legal framework by adding provisions for participation in criminal organizations, clarifying intermediary liability, and increasing penalties for offenses committed on behalf of China or other hostile foreign forces. These measures seek to deter such activities effectively.
Regarding how to prove the subjective element of "intent to harm national security or social stability," the ministry noted that current laws require clear intent from the offender, which often poses evidentiary challenges affecting prosecution and conviction.
To address this, the Executive Yuan's version of the amendment redefines this subjective requirement into an objective standard based on the actual risk posed during the crime's development. If the behavior objectively reaches a certain level of danger to protected interests, punishment should apply regardless of explicit intent. This approach aims to prevent irreparable damage before legal action can be taken.
The Judicial Yuan added that courts nationwide have merged national security and military expertise cases under specialized divisions. Local and high courts have established dedicated professional tribunals or panels, totaling 16 courts (57 panels) and 112 additional panels without full courts, summing up to 169 panels handling these matters.
On new offenses like "economic espionage" and "extraterritorial use of trade secrets related to core national technologies," the Judicial Yuan convened expert consultations to gather input on sentencing factors. These advisory meetings are ongoing.
Article translated by Charlene Chen and edited by Jack Wu
