Taiwan court hands out jail terms of up to 10 years in TSMC trade secrets case

2 months ago 26
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Taiwan court hands out jail terms of up to 10 years in TSMC trade secrets case

CHEN LI-MING. Chen Li-ming,a former TSMC and Tokyo Electron employee arrives at the Intellectual Property and Commercial Court for a verdict in a trade secrets case involving Tokyo Electron's Taiwan unit in New Taipei City, Taiwan April 27, 2026.

Ann Wang/Reuters

The ruling follows one of Taiwan's highest profile cases of alleged breaches of national core technologies, involving charges under the National Security Act

NEW TAIPEI, Taiwan – A Taiwan court fined the local unit of Japan’s Tokyo Electron T$150 million ($5 million) in a trade secrets case on Monday, April 27, handing jail terms of up to 10 years to five defendants for alleged theft of TSMC’s sensitive chip technology.

The ruling follows one of Taiwan’s highest profile cases of alleged breaches of national core technologies, involving charges under the National Security Act.

In August 2025, prosecutors indicted Chen Li-ming, a former TSMC and Tokyo Electron employee, of unlawfully obtaining the trade secrets, along with other defendants, in a bid to help Tokyo Electron win more equipment orders from TSMC.

Chen was sentenced to 10 years in prison, with three other former employees of the world’s biggest contract manufacturer of advanced AI chips getting terms ranging from two to six years.

The court in Taipei’s sister city of New Taipei also gave a former Tokyo Electron employee a 10-month sentence, suspended for three years.

Neither Tokyo Electron nor TSMC immediately responded to requests for comment. – Rappler.com

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