Tokyo Electron Claims No Involvement in TSMC Trade Secrets Case

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 28 2025

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Source: Reuters

Indictment of Former Employee: A former employee of TSMC has been indicted in Taiwan for allegedly stealing trade secrets to aid Tokyo Electron in competing for supplier deals related to TSMC's 2-nanometer chipmaking process.
Tokyo Electron's Response: Tokyo Electron has stated that its investigation found no organizational involvement or encouragement for the inappropriate acquisition of information and confirmed the dismissal of the implicated employee.
Legal Proceedings: Prosecutors are recommending a combined 14-year prison sentence for the indicted individual, Chen, for violating Taiwan's trade secrets and national security laws.
Significance of the Case: This case marks the first prosecution under Taiwan's National Security Law concerning the theft of core technologies, highlighting the seriousness of trade secret protection 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.