Taiwan indicts ex-TSMC manager for stealing chip secrets for China
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Taiwanese prosecutors indicted a former TSMC deputy manager on Monday for allegedly copying 21 confidential documents to establish a semiconductor materials analysis company in China. The case is the first prosecution under the National Security Act involving an attempt to leak Taiwan's core chip technologies to China, according to a spokesperson from Taiwan's High Prosecutors Office. The suspect, identified as Chen, faces up to seven years in prison.
The Indictment
Taiwanese prosecutors indicted a former TSMC deputy manager, identified as Chen, on Monday for allegedly stealing trade secrets to benefit China. According to Nikkei Asia, this is the first prosecution under the National Security Act involving an attempt to leak Taiwan's core semiconductor technologies. Chen has been detained for the past two months and could face up to seven years in prison.
The Alleged Scheme
Prosecutors allege that Chen copied 21 confidential documents from TSMC and took them home to study for use in a planned semiconductor materials analysis company in China called CSMAC. Chen allegedly worked with a Hong Kong man and was considering recruiting more talent from Taiwan for the venture. TSMC has confirmed that all documents have been recovered.
Broader Context
The case highlights ongoing threats to Taiwan's chip industry, which has been a target for Chinese state-sponsored hackers, as reported by PC Gamer. While China's memory maker CXMT has advanced in DRAM production, TSMC remains the world's leading manufacturer of high-performance logic chips. Theft of intellectual property could help China close the gap.
What's Next
Chen's trial is expected to proceed in Taiwanese courts. It remains unclear whether additional suspects will be charged or if the case will deter future attempts to steal chip secrets.
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Taiwan indicts ex-TSMC manager for stealing chip secrets for China
