Taiwan is preparing a draft law limiting overseas TSMC factory construction to technologies lagging behind the most advanced by one or two generations. This move aims to strengthen the country's economic security and consolidate its leadership in the semiconductor industry. Under the restrictions approved by parliament, new overseas plants will not be able to use the most modern processes. Chip production, including processors for future iPhones, will remain in Taiwan. A two to three year technology lag will maintain the country's advantages despite TSMC's expansion abroad.