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

by Lee Ji-lin

On December 2, 2025, local time, Taiwanese prosecutors indicted Tokyo Electron Taiwan , a Taiwanese subsidiary of Tokyo Electron , a Japanese semiconductor manufacturing equipment manufacturer. The prosecutors are seeking a fine of NT$120 million (approximately JPY 595 million) for allegedly stealing 2nm technology from TSMC , the world's largest semiconductor contract manufacturer (foundry).

Prosecutors seek NT$120M fine against Tokyo Electron Taiwan in TSMC case - Focus Taiwan
https://focustaiwan.tw/business/202512020025

Taiwan hits Japanese firm with indictment in TSMC data theft saga — Tokyo Electron charged with failing to prevent its staff from stealing trade secrets | Tom's Hardware
https://www.tomshardware.com/tech-industry/taiwan-hits-japanese-firm-with-indictment-in-tsmc-data-theft-saga-tokyo-electron-charged-with-failing-to-prevent-its-staff-from-stealing-trade-secrets

Taiwan Charges Tokyo Electron in TSMC Secrets Theft Case - Bloomberg
https://www.bloomberg.com/news/articles/2025-12-02/taiwan-charges-tokyo-electron-in-tsmc-secrets-theft-case

The lawsuit concerns the theft of TSMC's 2nm process technology, one of the most advanced semiconductor manufacturing nodes in the world and considered critical to Taiwan's national security.

In August 2025, the Intellectual Property Division of the Taiwan High Prosecutors' Office indicted three people: Chen Li-ming, a former TSMC engineer who worked at Tokyo Electron Taiwan, and TSMC engineers Wu Ping-chun and Ko Yiping, for providing TSMC's 2nm technology to Tokyo Electron Taiwan.

TSMC employee arrested on suspicion of leaking confidential information about 2nm semiconductors, Tokyo Electron also under investigation - GIGAZINE

The Taiwan High Prosecutors' Office has now indicted Tokyo Electron Taiwan on four additional charges of violating the Trade Secrets Act and the National Security Act. The prosecution has sought a fine of NT$40 million (approximately JPY 198 million) for three of the charges and NT$8 million (approximately JPY 40 million) for one of the charges. In Taiwan, when prosecuting multiple crimes, a single fine is determined under the Criminal Code after penalties for each crime are established, so the final fine may not equal the sum of the individual fines. In this case, the prosecution is seeking NT$120 million.

The Taiwan High Prosecutors' Office pointed out that 'Tokyo Electron Taiwan had a legal obligation to supervise Li Ming, but failed to take concrete measures to prevent misconduct, which led to this incident,' and concluded that 'Tokyo Electron Taiwan, as a corporation, should bear criminal responsibility for failing to take appropriate measures to prevent illegal activities.'

In August 2025, the Taiwan High Prosecutors' Office announced that it would seek 14 years in prison for Li Ming, 9 years for Ping-Chun, and 7 years for Yi-Ping. Furthermore, in September 2025, the Intellectual Property and Commercial Court ordered the detention of the three and incommunicado communication with the outside world.

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

Tokyo Electron has acknowledged that a former employee of Tokyo Electron Taiwan was involved in the incident, but announced that an internal investigation found no evidence that confidential information regarding TSMC's 2nm process had been leaked to a third party. Tokyo Electron has also stated that it has fired the employee involved in the incident and is fully cooperating with the authorities.