Three Individuals Charged by Taiwan Prosecutors for Theft of TSMC Trade Secrets to Assist Supplier Tokyo Electron

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 27 2025

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Source: Reuters

Indictment of Defendants: Taiwan prosecutors have indicted three individuals, including a former TSMC employee, for stealing trade secrets to assist Japan's Tokyo Electron in competing for TSMC supplier deals.
Legal Consequences: The prosecutors are recommending a combined 14-year prison sentence for the main defendant, Chen, for violating Taiwan’s trade secrets and national security laws.
TSMC's Stance: TSMC has emphasized its zero-tolerance policy towards trade secret violations and is committed to protecting its competitive edge through strict legal actions and enhanced internal management systems.
Significance of the Case: This case marks the first prosecution under Taiwan’s National Security Law related to the theft of core technologies, highlighting the importance of TSMC's advanced 2-nanometer chip technology in the semiconductor industry.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.