Ex-TSMC engineers charged with leaking tech secrets

TAIPEI (TVBS News) — Taiwan's Prosecutors charged on Wednesday (Aug. 27) three former Taiwan Semiconductor Manufacturing Company (TSMC, 台積電) engineers with leaking core 2-nanometer process technology secrets, marking Taiwan's first national security indictment for critical technology theft. Authorities accused Chen Li-ming (陳力銘), Wu Ping-chun (吳秉駿), and Ke I-ping (戈一平) of violating the National Security Act (國家安全法) and the Trade Secrets Act (營業秘密法). This unprecedented case highlights the vulnerability of Taiwan's semiconductor crown jewels.

Chen joined Tokyo Electron Limited (東京威力科創股份有限公司) in its marketing department after leaving TSMC. Familiar with TSMC's confidentiality protocols, he allegedly leveraged past friendships with current employees to obtain the company's trade secrets, including the cutting-edge 2-nanometer process technology. TSMC discovered suspicious anomalies during an internal investigation on July 8, prompting the semiconductor giant to file a formal complaint with prosecutors.

The investigation revealed that a previously rumored transaction in a coffee shop to enlist the engineers' help in stealing trade secrets did not occur. Chen allegedly exploited their shared alumni status from National Tsing Hua University (清華大學) to garner help from the other two engineers in acquiring confidential TSMC data without any payment. Prosecutors accuse Chen of capturing and reproducing the confidential information to assist his new employer in improving machine performance.

Prosecutors conducted intensive interrogations of the detained suspects and relevant witnesses, analyzing electronic records and evidence to determine the three engineers' involvement with what they claim is clear criminal evidence. Authorities have sought severe sentences for the engineers: 14 years for Chen, 9 years for Wu, and 7 years for Ke. The Intellectual Property and Commercial Court (智慧財產及商業法院) , Taiwan's specialized court for such cases, will hear the case next week.

The current case, involving Taiwan's semiconductor industry's core technology, is viewed as a major national security incident. The National Security Act classifies manufacturing technology for chips smaller than 14 nanometers as one of the nation's core critical technologies, subjecting trade secret theft to harsher penalties. This case represents the first indictment under the National Security Act for leaking a national core critical technology.

TSMC expressed zero tolerance toward actions harmful to its interests and committed to strengthening internal management and monitoring mechanisms to prevent similar incidents. The company files hundreds of patents annually while maintaining a registry of trade secrets not accessible to the public. Some have expressed concerns that TSMC's expansion abroad, such as a joint chip-making venture with U.S.-based Intel that was rumored in April, could raise leak risks. However, TSMC's chairman, C.C. Wei (魏哲家) denied such plans as rumors. ◼