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