Taiwanese prosecutors are seeking a 14-year prison sentence for a former employee accused of stealing trade secrets from Taiwan Semiconductor Manufacturing Company (TSMC). The case centers on the company’s 2-nanometer chip process, which is expected to power Apple’s A20 chip in the upcoming iPhone 18 lineup.
Authorities arrested six individuals earlier this year after TSMC reported unauthorized attempts to access sensitive information about its most advanced chipmaking technology. The company said it dismissed those involved and launched legal proceedings. Three of the six have now been indicted, with one defendant, identified only by the surname Chen, facing the most serious charges.
TSMC Flags Unusual Access
Nikkei Asia reported that TSMC uncovered the alleged theft through routine monitoring, which revealed unusual access patterns by one employee. The company said it imposed strict disciplinary measures and referred the matter to law enforcement.
According to prosecutors, the suspects are accused of violating Taiwan’s trade secrets and national security laws. The High Prosecutors Office confirmed the investigation falls under the National Security Act of 2022, which protects the country’s “National Core Critical Technologies,” including semiconductor processes beyond the 14-nanometer node.
Bloomberg later reported that the accused may have sought to sell the stolen information to a Japanese firm. Tokyo Electron, a major chip equipment supplier, said it dismissed an employee at its Taipei unit in connection with the probe and is cooperating with investigators.
Prosecutors indicted three suspects, including Chen, recommending a combined 14-year prison term for him. They cited “strong suspicion” that the defendants illegally acquired TSMC’s core technology and confirmed the case has entered judicial review.
TSMC said it enforces a zero-tolerance policy toward trade secret violations and pledged to continue strengthening internal monitoring. The company stressed that it will pursue legal action to protect its competitiveness and safeguard Taiwan’s most advanced chip technology.
