TSMC’s High-End 2nm Manufacturing Technology Leak Sees Perpetrators Face Up To 14 Years In Jail
Taiwanese prosecutors are seeking prison sentences of up to 14 years for former TSMC employees accused of leaking the company’s trade secrets tied to its highly sensitive 2-nanometer manufacturing process. Authorities allege that a former employee, now working for Tokyo Electron, solicited confidential details from current TSMC staff, putting at risk one of the most advanced chip technologies in the world.
According to a report from UDN, prosecutors charged three individuals under Taiwan’s national security laws. The central figure, identified as Chen, allegedly asked TSMC workers to share details of the company’s 2nm process technology after joining Tokyo Electron’s marketing department. Tokyo Electron is a critical TSMC supply chain partner, supplying etching equipment vital to semiconductor production.
Etching plays a crucial role in semiconductor fabrication, involving the precise removal of material from silicon wafers to reproduce circuit designs. Authorities say Chen knowingly sought this information despite being bound by TSMC’s strict confidentiality and supplier agreements.
Investigators found that Chen intended to use the trade secrets to aid Tokyo Electron’s development of more advanced etching equipment. The charges against him are significant: five years for stealing trade secrets with the intention of using them abroad, three years for trade secret theft, and eight years for violating national security laws concerning core technological assets.
Two other defendants, both current TSMC employees at the time of the breach, were also charged. One faces charges of theft and overseas use of trade secrets, while the other was charged solely with overseas use of trade secrets.
TSMC, which alerted authorities after detecting the breach, holds an outsized role not just in global semiconductor production but also in Taiwan’s national security strategy. The island relies heavily on TSMC’s technological dominance to strengthen its geopolitical position, especially amid rising tensions with China. Intellectual property such as its 2nm process node is treated as critical to national defense and protected under Taiwan’s toughest laws.
If convicted, Chen and the others face lengthy prison sentences, underscoring how seriously Taiwan treats breaches involving cutting-edge semiconductor technologies. As TSMC prepares to begin volume production of 2nm wafers next year, the company remains central to both global supply chains and geopolitical strategy.
Should trade secret leaks tied to advanced chipmaking be treated as national security violations with such harsh penalties, or is this punishment too severe?
