Trio of current and ex-TSMC employees face combined 30 years in prison for stealing national core key tech — engineer allegedly stole data to help Tokyo Electron improve etching machine performance

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(Image credit: Getty / Anadolu)

One former and two current TSMC employees have been formally charged by Taiwanese prosecutors for violating the country’s National Security Act. According to Nikkei Asia, the trio is accused of stealing details of the company’s 2nm process in an attempt to help Tokyo Electron become more competitive as a supplier of 2nm etching stations to mass produce the foundry’s latest technology.

One of the accused, Mr. Chen, was a former engineer at TSMC who had transferred to Tokyo Electron, said the prosecutors. The latter is a top Japanese firm that supplies chip-making equipment to the former, and it’s alleged that he contacted his co-conspirators, identified by the surnames Wu, Ge, and Liao, to gain insider information on the 2nm process.

The law was meant to protect the leakage of Taiwan’s most advanced technologies from its adversaries — China, to be specific — but it’s still prosecuting the suspected leakers even though the supposed recipient of the data is a Japanese firm. The prosecutors are asking for 14 years for Chen, nine years for Wu, and seven years for Ge. It seems that Liao was able to escape the indictment and that they’re not part of the case, at least for now.

Tokyo Electron said that it has already fired the employee involved in the case, and that it hasn’t discovered any leaked confidential information. Furthermore, the company said that it was willing to cooperate fully with the investigating authorities, and told Nikkei Asia that “it considers compliance with laws and ethical standards to be of its highest management priorities.”

On the other hand, TSMC claims that the stolen information isn’t critical, and that even if it reached its intended recipient, the data is compartmentalized and wouldn’t be usable.

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Jowi Morales
Contributing Writer

Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

  • GenericUsername109
    This article is factually incorrect in that it keeps referring to Taiwain as a "country" or a "nation". Even the US government official policy is that of "one China", i.e. no such thing as a sovereign Taiwan (ROC).
    https://www.csis.org/analysis/what-us-one-china-policy-and-why-does-it-matter
    Reply
  • bolweval
    GenericUsername109 said:
    This article is factually incorrect in that it keeps referring to Taiwain as a "country" or a "nation". Even the US government official policy is that of "one China", i.e. no such thing as a sovereign Taiwan (ROC).
    https://www.csis.org/analysis/what-us-one-china-policy-and-why-does-it-matter
    Does it matter to you what the Taiwanese people think of their country?
    Reply
  • S58_is_the_goat
    GenericUsername109 said:
    This article is factually incorrect in that it keeps referring to Taiwain as a "country" or a "nation". Even the US government official policy is that of "one China", i.e. no such thing as a sovereign Taiwan (ROC).
    https://www.csis.org/analysis/what-us-one-china-policy-and-why-does-it-matter
    You must be new here...
    Reply
  • USAFRet
    GenericUsername109 said:
    This article is factually incorrect in that it keeps referring to Taiwain as a "country" or a "nation". Even the US government official policy is that of "one China", i.e. no such thing as a sovereign Taiwan (ROC).
    https://www.csis.org/analysis/what-us-one-china-policy-and-why-does-it-matter
    Totally irrelevant to the article in question.

    To all reading this, please don't continue down this path of discussion.
    Thanks.
    Reply
  • bill001g
    What is the purpose of this article. It actually links a previous post on tomshardware from a few weeks ago. I can see no new information. Neither article actually had the most interesting information you find on the sites out of taiwan. Seems TSMC has their computers well protected so they can't make copies. These guys took photos of the screen with their cell phones.
    Reply
  • edzieba
    bill001g said:
    What is the purpose of this article.
    The very first line of the article is:
    One former and two current TSMC employees have been formally charged by Taiwanese prosecutors for violating the country’s National Security Act.
    .
    If you can't even make the absolute minimum attempt to read the article before complaining about it, that's on you.
    Reply
  • bill001g
    edzieba said:
    The very first line of the article is:
    .
    If you can't even make the absolute minimum attempt to read the article before complaining about it, that's on you.
    Maybe you should actually read the comments fully instead of just taking the first part out of context.

    This author in effect just copied a almost identical article that was on this site from a different author from a couple weeks ago there is nothing new in it. There are even older articles on different sites that have more inforamtion.

    So now you explain why YOU did not read the article and check the linked sources and ask yourself what is the purpose of this article.....other than the author likely gets paid money for it.
    Reply
  • edzieba
    bill001g said:
    there is nothing new in it
    The new part is they have been formally charged under the new National Security Act. That's the news, and that's the first line of the article.
    Reply
  • bill001g
    edzieba said:
    The new part is they have been formally charged under the new National Security Act. That's the news, and that's the first line of the article.
    I see your point but this is a error then in the first article. From what I have seen if you read the very early reports directly out of taiwan...and these are the translated ones so their might be even older ones. They were charged when they were arrested with the security act but not all articles use those words. There has been almost no update on this at least that is in english out of taiwan since then.

    I actually knew about this quite a while before western press had it. A friend who lives in taiwan and did the same network security job I did at the company we worked for send me a message talking about the extreme that these intellectual property thieves go. I will admit I did not see that difference in the details in these articles, I had read all this from sources in taiwan.

    This is why I added the comment that they used phones to take photos of the screens to bypass all the restrictions on the computers. That information is not in either of these reports and is what I found most interesting. If the company had been stupid and let them bring a flash drive in or print off the reports like we have seen in other cases it would not be as interesting to me.

    Part of my comment is the frustration with some of the independent journalists toms buys content from in general.
    Reply