News
Taiwan Prosecutors Seek NT$120M Fine Against Tokyo Electron Taiwan for TSMC 2nm Trade Secret Leak
Tuesday, December 2, 2025 at 11:40 AM
Taiwanese prosecutors have filed an additional indictment seeking a fine of NT$120 million (US$3.8 million) against Tokyo Electron Taiwan (TEL), concluding the company bears corporate criminal responsibility for the leakage of TSMC's 2nm process trade secrets. The indictment stems from the finding that TEL lacked adequate internal controls to prevent high-risk misuse of the confidential data.
Context
Taiwanese prosecutors on December 2 charged Tokyo Electron’s local unit with violating the National Security Act and the Trade Secrets Act. The charges follow the indictment of a former employee for allegedly stealing trade secrets from chipmaker TSMC. If convicted, Tokyo Electron's subsidiary faces a potential fine of up to T$120 million ($3.82 million).
While the financial penalty is modest, the charges represent a significant escalation, targeting the corporate entity of a critical equipment supplier, not just an individual. The case creates uncertainty in the crucial partnership between TSMC, the world's leading foundry, and Tokyo Electron, a key provider of chip-making tools. In August, Tokyo Electron stated it had not confirmed any organizational involvement in the ex-employee's case. Investors should monitor for potential disruptions to the semiconductor supply chain and any tightening of regulations on supplier access to sensitive fab technology.
Sources (11)
Taiwan charges Tokyo Electron unit in TSMC trade secrets ...TSMC says unit TSMC Global acquires fixed-income ...No room for compromise on Taiwan's security, president ...Taiwan charges Tokyo Electron unit in TSMC trade secrets ...Taiwan charges Tokyo Electron unit in TSMC trade secrets ...Taiwan raids former TSMC exec's home in trade secrets ...Tokyo Electron says it has no organisational role in TSMC ...Taiwan prosecutors indict three people for stealing TSMC ...
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