A Taiwanese court convicted four engineers and a corporate defendant Monday in a landmark first-instance ruling over the theft of Taiwan Semiconductor Manufacturing Co.'s (TSMC) closely guarded 2-nanometer process technology, sentencing the ringleader Chen Li-ming (陳力銘) to a decade in prison and imposing a NT$150 million (approximately $4.7 million) fine on Japanese equipment supplier Tokyo Electron's Taiwan subsidiary.
The Intellectual Property and Commercial Court determined that the defendants had illegally obtained trade secrets designated as national core critical technology, violating Taiwan's National Security Act, the Trade Secrets Act, and computer misuse laws. The case, which prosecutors built through three separate waves of indictments, is being hailed as a major precedent for protecting intellectual property in Taiwan's vital semiconductor industry.
From Fab 12 to the Competition
After resigning from TSMC's Fab 12 where he worked as a yield-improvement engineer, Chen joined the marketing division of Tokyo Electron's Taiwan subsidiary, where his role included supporting etching equipment services for the chipmaker. Investigators found he exploited those connections — recruiting National Tsing Hua University alumnus Wu Ping-chun (吳秉駿) and colleague Ge Yi-ping (戈一平) — to extract confidential details of the cutting-edge 2nm manufacturing process.
A Second Front: 14nm Secrets Also Stolen
A subsequent probe uncovered a second front: Chen admitted conspiring with serving TSMC engineer Chen Wei-chieh (陳韋傑) to steal integrated-circuit manufacturing know-how for nodes below 14 nanometers, along with critical data on process gases, chemicals, and equipment — all likewise classified as national core technology.
Sentences and Corporate Penalty
The court imposed the following sentences: Chen Li-ming received 10 years' imprisonment; Wu Ping-chun, one year and six months under the Trade Secrets Act plus two years under the National Security Act; Ge Yi-ping, two years; and Chen Wei-chieh, six years. Lu Yi-yin (盧怡尹), charged with destroying evidence, was sentenced to 10 months suspended for three years, with conditions including a NT$1 million (approximately $31,000) payment and six sessions of legal education. Tokyo Electron's Taiwan entity received a NT$150 million (approximately $4.7 million) fine, also suspended for three years, and must pay TSMC NT$100 million (approximately $3.1 million) in compensation while contributing NT$50 million (approximately $1.6 million) to the public treasury.
Three Waves of Indictments
Prosecutors had pursued the case in stages: first charging Chen Li-ming, Wu Ping-chun, and Ge Yi-ping over the 2nm leaks; then adding the corporate defendant; and finally addressing the 14nm-related thefts and evidence tampering.
A Warning Shot for Anyone Eyeing Taiwan's Chip Secrets
The verdict underscores Taiwan's determination to shield its semiconductor crown jewels — technologies widely regarded as strategic assets — from internal leaks that could compromise national security and economic competitiveness.
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