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Taiwanese prosecutors are seeking jail sentences as long as 14 years for former TSMC employees involved in the unauthorized sharing of trade secrets. The investigation by Taiwanese authorities reveals that a former TSMC employee asked other employees to share key details about the firm’s 2-nanometer manufacturing technology. Prosecutors have charged three individuals with violating Taiwan’s national security laws, which could result in up to 14 years in prison.
Former TSMC Employee Working for Tokyo Electron Asked TSMC Workers to Share Sensitive Information, Says Report
The Taiwanese authorities’ investigation confirms what industry insiders initially speculated about the leak of details related to TSMC’s 2-nanometer manufacturing process. A former TSMC employee who joined Tokyo Electron’s marketing department is central to this controversy.
Tokyo Electron, a key TSMC supply chain partner for chip fabrication equipment, supplies TSMC with machines used in etching and other processes. According to the Taiwanese authorities, the former TSMC employee sought details about the company’s leading-edge 2-nanometer manufacturing process from current employees to help improve Tokyo Electron’s etching machines.
In semiconductor fabrication, etching involves removing chip manufacturing materials from a silicon wafer to reproduce circuit designs. The authorities state that the former employee, named Chen, sought these details despite being aware of TSMC’s strict confidentiality agreements with suppliers.
After being alerted, TSMC informed the Taiwanese authorities, who conducted their investigations. Prosecutors continued to investigate the three defendants, one of whom was a former TSMC employee and two who were working at TSMC during the breach.
The main accused, Chen, has been indicted for five years for stealing trade secrets with the intention of using them abroad, three years for stealing trade secrets, and eight years for violating national security laws when it came to core and key trade secrets.
Among the TSMC employees, one was charged with the use of trade secrets abroad and the theft of trade secrets, while the other was charged only with the overseas use of trade secrets.
TSMC and its manufacturing technology play a crucial role in Taiwan’s national security and politics. The island region relies on TSMC’s manufacturing processes and global chip market share to mitigate potential Chinese aggression. Consequently, the firm’s intellectual property is treated with utmost importance under Taiwanese laws.
