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Taiwanese authorities detain three individuals for alleged theft of TSMC manufacturing trade secrets
Tuesday, August 5, 2025 at 11:41 AM
Three individuals have been detained by Taiwanese authorities for the alleged theft of confidential chip manufacturing trade secrets from TSMC.
Context
Taiwanese prosecutors have indicted three individuals and the Taiwanese unit of Tokyo Electron in a significant expansion of a trade secret theft case involving TSMC. The investigation, which began in August 2025, originally centered on the alleged theft of 2-nanometer (2nm) process secrets—TSMC's most advanced technology. Authorities recently discovered that the breach also included 14-nanometer secrets stored on the equipment maker's cloud servers. The defendants, including former TSMC engineer Chen Li-ming, reportedly sought to help Tokyo Electron improve its etching machines to secure more contracts with the foundry.
This case marks a major test of Taiwan's National Security Act, with prosecutors seeking prison terms of up to 8.5 years and fines totaling NT$145 million ($4.6 million) against Tokyo Electron Taiwan. The timing is critical as TSMC prepares for mass production of 2nm chips in 2025, a node vital for the next generation of Nvidia and Apple AI processors. This incident underscores the heightening risks of industrial espionage within the semiconductor supply chain as competition over specialized manufacturing equipment intensifies.
Sources (11)
Table of ContentsTaiwan prosecutors charge three with stealing TSMC trade secrets | The Straits TimesTaiwan prosecutors file new indictments in Tokyo Electron trade secrets case | ReutersWho’s really after TSMC’s 2nm secrets? The trail may not lead to China3 men, Tokyo Electron Taiwan indicted over new TSMC trade secret theft - Taipei TimesTaiwan hits Japanese firm with indictment in TSMC data theft saga — Tokyo Electron charged with failing to prevent its staff from stealing trade secrets | Tom's Hardware
TSMC Terminates Employees in Wake of Alleged 2 nm Trade-Secret Breach TSMC 2nm Chip Theft: Major Risks for Bitcoin Mining and Blockchain Tech - Let's Talk, Bitcoin
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