Taiwan Court Sentences Five to Prison in Major TSMC Trade Secrets Theft Case
A Taiwanese court has delivered significant penalties in a landmark industrial espionage case, imposing a $5 million fine on the local subsidiary of Japanese electronics firm Tokyo Electron and handing down custodial sentences to five individuals, with terms reaching up to a decade behind bars.
The verdict marks a watershed moment in Taiwan's efforts to safeguard its semiconductor industry secrets, representing one of the nation's most consequential cases involving alleged misappropriation of cutting-edge chip manufacturing technology owned by TSMC, the world's premier contract chipmaker. The prosecution also pursued charges under Taiwan's National Security Act.
Details of the Case
The investigation traced back to August 2025, when prosecutors charged Chen Li-ming, a former employee at both TSMC and Tokyo Electron, with illegally acquiring proprietary trade secrets. According to the prosecution, Chen and his co-defendants orchestrated the operation to strengthen Tokyo Electron's competitive position and secure additional equipment contracts with TSMC.
Sentencing Outcomes
The New Taipei City court issued the following penalties:
- Chen Li-ming: 10 years imprisonment
- Three other former TSMC employees: Prison sentences ranging from two to six years
- One former Tokyo Electron staffer: 10 months imprisonment, suspended for three years
The proceedings took place in New Taipei City on April 27, 2026.
Neither Tokyo Electron nor TSMC has issued any public statement regarding the court's decision at this time.