Taiwanese prosecutors have indicted a Tokyo Electron subsidiary and three former employees for stealing confidential information from TSMC.

In August 2025, former employees of TSMC, a major Taiwanese semiconductor foundry, were arrested and indicted for stealing confidential information about 2nm semiconductors from the company, and Tokyo Electron Taiwan, a Taiwanese subsidiary of Tokyo Electron, was also indicted. During the investigation, it was discovered that the defendants had also stolen other confidential information from TSMC, and Tokyo Electron Taiwan and the former employees were additionally indicted.

3 men, Tokyo Electron Taiwan indicted over new TSMC trade secret theft - Taipei Times
https://www.taipeitimes.com/News/biz/archives/2026/01/06/2003850100

Taiwan prosecutors file new indictments in Tokyo Electron trade secrets case | Reuters
https://www.reuters.com/world/asia-pacific/taiwan-prosecutors-file-additional-charges-tsmc-trade-secrets-case-2026-01-05/

In August 2025, Chen Li-ming, a former employee of Tokyo Electron's Taiwanese subsidiary, and two others were arrested and indicted for allegedly stealing confidential information about 2nm semiconductors from TSMC. Chen is a former TSMC employee who, after resigning and joining Tokyo Electron Taiwan, sought help from his former colleagues to obtain confidential information. Some of his colleagues are believed to have responded to Chen's requests and cooperated in leaking the confidential information.

TSMC plans to impose a maximum sentence of 14 years in prison on employees who stole 2nm semiconductor process technology - GIGAZINE

In December, the Taiwan High Prosecutors' Office indicted Tokyo Electron Taiwan for violating the Trade Secrets Act and the National Security Act. The Taiwan High Prosecutors' Office said Tokyo Electron Taiwan had neglected its legal obligation to supervise Chen, and demanded a fine of NT$120 million (approximately JPY 596 million).

Taiwan prosecutors indict Tokyo Electron subsidiary, demanding a fine of 600 million yen for stealing TSMC trade secrets - GIGAZINE

According to a report by TAIPEI TIMES on January 6, 2026, prosecutors discovered that confidential information about TSMC's 14nm process technology was stored in Tokyo Electron Taiwan's cloud storage during an investigation into the theft of confidential information about 2nm semiconductors.

In response, prosecutors have filed additional charges against Chen, two former TSMC employees, one former Tokyo Electron Taiwan employee, and Tokyo Electron Taiwan for the theft of confidential information on 14nm process technology, separate from the previous charges.

Chen and two former TSMC employees have been charged with copying trade secrets, with Chen facing a seven-year prison sentence and his accomplice facing eight years and eight months in prison. Meanwhile, Lu, a former Tokyo Electron Taiwan employee, has been charged with destroying evidence during an investigation, with prosecutors seeking a one-year prison sentence.

Tokyo Electron Taiwan was also indicted on charges of destroying evidence, and prosecutors are seeking a fine of NT$25 million (approximately JPY 124 million). However, prosecutors also noted that Tokyo Electron Taiwan's cooperation with the investigation was instrumental in resolving the case.

Tokyo Electron Taiwan's parent company, Tokyo Electron, has not been indicted and the series of issues has not affected its business performance.