TEL fires worker leaking TSMC data, fully cooperates with probe

Taipei, Aug. 7 (CNA) Tokyo Electron Ltd. (TEL), a Japan-based supplier to TSMC, the world's largest contract chipmaker, has dismissed an employee from its Taiwan branch for obtaining proprietary information related to TSMC's cutting-edge 2-nanometer process.

In a statement issued Thursday, TEL said the dismissed employee had worked for its Taiwan subsidiary and was fired because "strict compliance with laws and ethical standards is one of our highest management priorities."

"Based on our internal investigation, we have found no evidence at this time of any leakage of related confidential information to external parties," the company added.

TEL, which had declined to comment when the case was first reported on Tuesday, stated that the company will fully cooperate with Taiwanese authorities in the ongoing investigation but cannot disclose further details due to its confidential nature.

According to the Taiwan High Prosecutors Office, whose Intellectual Property Branch is leading the investigation, about nine individuals are implicated, including a former TSMC employee surnamed Chen (陳) and another surnamed Wu (吳), who was also fired by TSMC.

All of the data and hundreds of photos they had obtained were sent to a TEL employee who had also previously worked at TSMC.

Other individuals involved were staff from research and development centers. They have been reassigned to other departments as no serious violations were found.

TSMC detected unauthorized access between July 25 and 28 to proprietary data concerning its 2nm process, which is scheduled for mass production later in 2025.

The High Prosecutors Office noted the case marks the first breach of Taiwan's National Security Act involving the leak of so-called "national core technologies" since a new provision was added to the law in 2022.

Information related to chips at the 14nm node or more advanced is protected, with perpetrators facing up to 12 years in prison and a maximum fine of NT$100 million (US$3.35 million).

TEL was not identified by prosecutors when the case initially came to light on Tuesday.

The incident comes at a sensitive time as Taiwan tries to navigate between U.S. tariff pressure and growing threats from Beijing, with both countries seeking to erode what is known as Taiwan's "silicon shield" through different strategies.

TEL has close ties with Rapidus Corp., a chipmaker backed by the Japanese government and established in August 2022. Rapidus Chairman Tetsuro Higashi is a former president of TEL.

Commentators remain divided on the case.

Juan Mu-hua (阮慕驊), cited by FTNN, called the case a well-orchestrated scheme given the number of people involved. However, industry sources told Digitimes that the breach may have stemmed from rookie mistakes, possibly a result of TSMC's recent wave of rapid hiring, as the sloppiness of the operation suggests.

TEL is unlikely to have risked its relationship with a major client like TSMC, the sources said.

All three principal suspects have been detained and are being held incommunicado.