Taipei: A Taiwanese court on Monday sentenced four former employees of Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest maker of advanced chips, to prison terms of up to 10 years for theft and unauthorized disclosure of trade secrets. The Intellectual Property Court found the defendants guilty of violating the National Security Act, the Trade Secrets Act, and computer misuse laws.
According to Ghana News Agency, the lead defendant, Chen Li-ming, was sentenced to 10 years in prison after prosecutors had sought a 14-year term. Three other defendants received sentences of six, three, and two years, respectively. TSMC stated that it maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests. Such violations are dealt with strictly and pursued to the full extent of the law.
TSMC added that it will continue to strengthen its internal management and monitoring systems and will work closely with relevant regulatory authorities to protect its competitive advantage and operational stability. The case underscores Taiwan's strategic importance in the global semiconductor industry, particularly as a critical supplier in the artificial intelligence supply chain for companies such as Nvidia and Apple.
Prosecutors revealed that Chen, a former TSMC engineer who later joined Japan's Tokyo Electron, conspired with former colleagues still working at TSMC. Beginning in mid-2023, the group copied classified materials, including data related to next-generation chip manufacturing technology. Additionally, a defendant affiliated with Tokyo Electron was sentenced to 10 months in prison and ordered to pay 1 million Taiwan dollars ($31,800) to the public treasury.
Tokyo Electron was separately fined 150 million Taiwan dollars in total. Of this amount, 100 million Taiwan dollars is to be paid to TSMC, and 50 million Taiwan dollars is to be paid to the public treasury. Presiding judge Chang Ming-huang told a press conference that the lighter sentence was primarily due to Chen's full confession and his cooperation in identifying accomplices.
The court also considered that Tokyo Electron had reached a settlement with TSMC and that TSMC had expressed willingness to forgive the damages. According to the court, this is Taiwan's first case under the National Security Act involving trade secrets classified as national core critical technologies. All defendants may still appeal.