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Taiwanese prosecutors indict three for stealing TSMC trade secrets to benefit Tokyo Electron
Wednesday, August 27, 2025 at 12:06 PM
Taiwanese prosecutors have indicted three individuals for the alleged theft of trade secrets from TSMC. The stolen proprietary information was reportedly intended to benefit Tokyo Electron, a major equipment supplier for the semiconductor industry.
Context
Taiwanese prosecutors have indicted three individuals and the local unit of Tokyo Electron for the theft of trade secrets from TSMC. The case, which first saw indictments in August 2025, involves the illegal acquisition of proprietary information related to 2-nanometer and 14-nanometer chip manufacturing processes. Prosecutors allege that a former TSMC engineer, now at Tokyo Electron Taiwan, conspired with former colleagues to obtain core technologies to help the supplier compete for contracts.
This marks the first time Taiwan has invoked its 2022 National Security Act amendments to protect "national core critical technologies" from industrial espionage. Authorities are seeking prison sentences of up to 8 years and 8 months for the primary suspects and a fine of NT$120 million ($3.8 million) for Tokyo Electron. The move signals a major escalation in Taiwan's efforts to safeguard its "silicon shield" amid intensifying global competition for AI-essential semiconductor intellectual property.
Sources (9)
Taiwan prosecutors indict three people for stealing TSMC trade secrets to help its supplier Tokyo Electron | ReutersTaiwan Invokes National Security Law to Protect TSMC Trade Secrets - The New York TimesChipmaker TSMC says it has discovered potential trade secret leaks3 men, Tokyo Electron Taiwan indicted over new TSMC trade secret theft - Taipei TimesTaiwan Hsinchu District Prosecutors OfficeTaiwan detains TSMC staff for alleged theft of key technology trade secrets | CNNTaiwan’s TSMC – A Trade Secret Cult(ure) - TangiblyTaiwan Prosecutors Announce First Major Semiconductor Indictments under New National Security Framework — Global Trade & Sanctions Law — January 26, 2026
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