By peter.
In a landmark case, Taiwan prosecutors have indicted Tokyo Electron’s Taiwan subsidiary — the first company ever to face criminal charges under the island’s National Security Act for alleged theft of “national core key technology” (i.e., TSMC’s 2nm chip secrets).
If convicted, Tokyo Electron Taiwan could be hit with fines up to T$120 million (~$3.8 million USD).
What Happened
- August 2025: Former TSMC engineer Chen (joined Tokyo Electron Taiwan) allegedly recruited two ex-colleagues still at TSMC to steal 2nm process secrets.
- Goal: Help Tokyo Electron win supplier contracts for TSMC’s bleeding-edge 2nm node.
- Chen was indicted in August along with two others.
- December 2, 2025: Prosecutors escalated — charging the entire Tokyo Electron Taiwan unit for failing to supervise Chen and prevent the theft.
Prosecutors’ damning verdict:
“Apart from vague internal rules, the company had ZERO concrete preventive or managerial measures. They bear corporate criminal liability.”
Why This Is a Big Deal
- First-ever corporate indictment under Taiwan’s National Security Act for stealing “core critical technology.”
- Sends a brutal message: Foreign companies in Taiwan will be held directly responsible if their employees poach TSMC/IPMC secrets.
- Tokyo Electron is one of the Big Four semiconductor equipment makers (with ASML, Applied Materials, Lam Research) — this is like charging a nuclear supplier with espionage.
Tokyo Electron’s only response so far (August): “We have not confirmed any organisational involvement.” They declined comment on today’s corporate charges.
TSMC declined to comment, but the message from Taipei is crystal clear: Touch 2nm (or any core tech) secrets and we’ll come after your entire company — not just the rogue employee.
This is Taiwan drawing a red line around its semiconductor crown jewels.
#TSMC #TokyoElectron #TaiwanChipWar #2nm #TechEspionage
