3 men, Tokyo Electron Taiwan indicted over new TSMC trade secret theft

Taipei, Jan. 5 (CNA) The Taiwan High Prosecutors Office Intellectual Property Branch on Monday indicted three individuals and Tokyo Electron Taiwan Ltd. for stealing Taiwan Semiconductor Manufacturing Co.'s (TSMC) 14-nanometer (14nm) technology secrets.

The individuals included Chen Li-ming (陳力銘), a former TSMC engineer who worked at Tokyo Electron Taiwan, a TSMC employee surnamed Chen (陳), and a Tokyo Electron employee surnamed Lu (盧), according to a news statement by the office.

The first two were charged with reproducing trade secrets relating to national core key technologies under the National Security Act, while Lu and Tokyo Electron Taiwan were charged with destroying evidence in a criminal case, the statement said.

The case came to light when prosecutors were investigating Tokyo Electron Taiwan for the alleged theft of TSMC trade secrets related to its 2nm process. During the investigation, it was discovered that the company's cloud storage contained additional trade secrets linked to TSMC's 14-nanometer technology, prosecutors said.

Prosecutors said Chen Li-ming confessed after being presented with evidence and identified an accomplice, also surnamed Chen, who has yet to admit guilt. They are seeking prison sentences of seven years and eight years and eight months, respectively, for the two defendants.

Prosecutors added that Lu attempted to delete evidence after learning that TSMC had uncovered Chen Li-ming's actions and has continued to deny any wrongdoing. They are seeking a one-year prison sentence for Lu.

Prosecutors are also seeking a NT$25 million (US$794,356) fine against Tokyo Electron Taiwan, while also noting that the company cooperated with the investigation, which aided the case.

Chen Li-ming, along with two others, were indicted in August 2025 for stealing TSMC's 2nm technology. The three are currently being detained.

Tokyo Electron Taiwan was indicted in December on four violations of the Trade Secrets Act and National Security Act for failing to properly supervise Chen Li-ming, with prosecutors seeking a total penalty of NT$120 million.