Taiwan's TSMC Trade Secrets Saga: A Breach Unveiled

A former TSMC employee has been indicted for allegedly stealing core trade secrets to be used in China. Prosecutors have charged the employee, identified as Chen, with violating Taiwan's National Security and Trade Secrets Acts. The case highlights Taiwan's increasing focus on protecting critical technologies.

A former employee of Taiwan's TSMC has been indicted for allegedly stealing critical trade secrets with plans to use them in China. Identified only by the surname Chen, the former deputy manager faces charges under Taiwan's National Security Act and Trade Secrets Act, with prosecutors seeking a seven-year prison term.

Prosecutors allege that between 2023 and 2024, Chen conspired with a Hong Kong national to establish CSMAC, a semiconductor materials analysis company in China, and copied 21 TSMC documents related to national core technologies. Chen remains in custody, and Reuters was unable to reach him for comment.

TSMC, a key supplier to companies like Nvidia and Apple, uncovered the unauthorized copying through an internal investigation, recovering all copied documents. The Hong Kong suspect was not charged due to his death. Taiwan emphasizes the protection of its critical technologies amid growing concerns over China's interest in their semiconductor talent and advanced chip technology.