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Taiwanese prosecutors are seeking jail sentences as long as 14 years for former TSMC employees involved in the unauthorized sharing of the firm's trade secrets. An investigation conducted by the Taiwanese authorities reveals that a former TSMC employee asked those working at the firm to share with him key details of the firm's 2-nanometer manufacturing technology. Prosecutors charged three individuals with violating Taiwan's national security laws, which could see them face as much as 14 years in prison.
Former TSMC Employee Working For Tokyo Electron Asked TSMC Workers To Share Sensitive Information, Says Report
The investigation conducted by the Taiwanese authorities affirms what industry insiders had initially speculated about the leak of details related to TSMC's 2-nanometer manufacturing process technology. According to the details, a former TSMC employee who went on to join Tokyo Electron's marketing department is at the center of the controversy.
Tokyo Electron is a key TSMC supply chain partner for chip fabrication equipment. The firm supplies TSMC with machines used in etching and other chip manufacturing processes. According to the Taiwanese authorities, the former TSMC employee sought details about the firm's leading-edge 2-nanometer manufacturing process from current employees to help improve Tokyo Electron's machines used in the etching process.
Etching, in semiconductor fabrication, involves removing chip manufacturing materials from a silicon wafer in order to reproduce circuit design. The authorities state that the former employee, called Chen, sought the details despite being aware of TSMC's strict confidentiality agreements with suppliers.
After being alerted to the matter, TSMC alerted the Taiwanese authorities, who conducted their investigations. Prosecutors continued to conduct extensive investigations of the three defendants, one of whom was a former TSMC employee and two who were working at TSMC at the time of the breach.
The main accused, Chen, has been indicted for five years for stealing trade secrets with the intention of using them abroad, three years for stealing trade secrets and eight years for violating national security laws when it came to core and key trade secrets.
Among the TSMC employees, one was charged with the use of trade secrets abroad and the theft of trade secrets, while the other was charged with the overseas use of trade secrets only.
TSMC and its manufacturing technology enjoy a key role in Taiwan's national security and politics. The island region has relied on TSMC's manufacturing process and global chip manufacturing share to hedge itself against potential Chinese aggression. Subsequently, the firm's intellectual property is treated with the highest importance by Taiwanese laws.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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