Former TSMC employee indicted for allegedly selling information to China.
A former employee of Taiwan-based TSMC has been indicted for attempting to smuggle technology designated as a national key technology by the Taiwanese government into China. Prosecutors describe it as 'the first case of violation of the National Security Law related to technology designated as a national key technology.'
Taiwan indicts ex-TSMC manager for allegedly stealing chip secrets for China — first case of its kind links managers to Chinese semiconductor materials analysis company | Tom's Hardware
Taiwan indicts ex-TSMC employee over alleged theft of trade secrets for intended use in China | Reuters
https://www.reuters.com/world/asia-pacific/taiwan-indicts-ex-tsmc-employee-over-alleged-theft-trade-secrets-use-china-2026-07-20/
According to Taiwanese prosecutors, a former TSMC employee named Chen illegally copied 21 confidential company documents. These documents included technologies designated as national core technologies by Taiwan, and it is believed that the intention was to use them in China. However, the illegal copying was detected by TSMC's internal monitoring system, and the company recovered all the documents through its own investigation.
Furthermore, Chen is suspected of conspiring with a Hong Kong national named Ding between 2023 and 2024 to establish CSMAC, a semiconductor materials analysis company in China. Chen had prepared several proposals for the business, including a plan called the 'Blue Ocean Plan' aimed at recruiting talent from Taiwan's semiconductor industry to join CSMAC.
Prosecutors discovered Chen while investigating another Chinese spy case centered on Ding. Investigators allege that Ding, acting on instructions from the Nanning branch of the Political Work Department of the Central Military Commission of the Communist Party of China, repeatedly entered Taiwan to recruit agents and collect information on important Taiwanese technologies. Ding died in early 2026 and was not indicted.
Prosecutors stated that 'although the leak was unsuccessful, this case is of great significance as it is the first instance of its kind under Taiwan's National Security Law.' Prosecutors are seeking a maximum sentence of seven years imprisonment for Chen.
Taiwan's National Security Law, enacted in 2022, criminalizes the copying, use, or disclosure of trade secrets related to technologies designated as national core technologies. This designation includes semiconductor manufacturing processes more advanced than 14nm. The first indictment under this law occurred in August 2025, when three current and former TSMC employees were arrested on suspicion of attempting to leak data related to the 2nm process. In the same case, Tokyo Electron's Taiwanese subsidiary was subsequently indicted for failing to prevent the theft of information.
A TSMC employee has been arrested on suspicion of leaking confidential information about 2nm semiconductors; Tokyo Electron is also reportedly under investigation - GIGAZINE
TSMC is also pursuing a civil lawsuit against Luo Wei-cheng, a former R&D executive who moved to Intel in 2025, and Taiwanese authorities are simultaneously conducting a national security investigation into his resignation.
TSMC sues former executive who moved to Intel for alleged leak of confidential information - GIGAZINE
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