A Taiwan court has sentenced Chen Li-ming, a former employee of Tokyo Electron and previously of TSMC, to 10 years in prison for illegally accessing and collecting trade secrets from TSMC, one of the world's leading semiconductor manufacturers. The court found that Chen used his relationships with former TSMC colleagues to photograph, copy, and pass along confidential materials to Tokyo Electron, aiming to help the Japanese company improve its bids as a TSMC supplier and to enhance his personal work performance [1].
In addition to Chen's sentence, Tokyo Electron was fined 150 million new Taiwan dollars ($4.8 million), and four other individuals received sentences of up to six years in jail. The sentencing was handed down by Judge Chang Ming-huang at Taiwan’s Intellectual Property and Commercial Court under the national security act and other statutes, highlighting Taiwan's commitment to protecting its advanced technology and semiconductor sector amid the global artificial intelligence boom [1].
Tokyo Electron stated that it takes the court’s findings seriously and will strengthen its information management systems and other relevant measures. The company emphasized that neither the court nor its internal investigation found evidence of organizational involvement in the trade secrets theft. TSMC responded by reaffirming its zero-tolerance policy toward any actions that compromise trade secret protection or harm the company’s interests, stating that such violations are dealt with strictly and pursued to the full extent of the law [1].
The case underscores the importance of intellectual property protection in Taiwan’s export-oriented economy and the semiconductor industry, which includes major clients such as Nvidia and Apple [1].
CONCLUSION
The sentencing of a former Tokyo Electron employee to 10 years in prison for stealing TSMC trade secrets marks a significant step in Taiwan's efforts to safeguard its semiconductor industry. Both Tokyo Electron and TSMC have reiterated their commitment to strict information security and legal compliance. The case highlights the increasing scrutiny and legal consequences surrounding intellectual property protection in the global chip sector.