Taiwan Court Fines Tokyo Electron $5M in High-Profile Trade Secrets Case

A Taiwan court has fined Tokyo Electron's local unit T$150 million ($5 million) and sentenced five defendants up to 10 years in prison for allegedly stealing TSMC's sensitive chip technology. The case highlights significant breaches of Taiwan's national core technologies under the National Security Act.

A Taiwan court has imposed a substantial fine of T$150 million ($5 million) on the local unit of Japan's Tokyo Electron. This fine comes amid a trade secrets case, where jail terms extending up to 10 years have been handed to five defendants accused of stealing sensitive chip technology from TSMC.

The ruling marks a significant moment in one of Taiwan's most high-profile national security cases. Prosecutors, in August 2025, charged Chen Li-ming, a former employee of both TSMC and Tokyo Electron, with the unlawful acquisition of trade secrets. These actions were allegedly aimed at aiding Tokyo Electron in securing more equipment orders from TSMC.

Chen received a 10-year prison sentence, while three other ex-employees of the leading advanced AI chip contract manufacturer faced sentences ranging from two to six years. Moreover, a former Tokyo Electron employee received a 10-month sentence, suspended for three years. Both Tokyo Electron and TSMC have yet to comment on the court's decision.