Taiwanese prosecutors indicted a former TSMC deputy manager for allegedly stealing 21 confidential chip technology documents to share with a Chinese firm. This case, the first under Taiwan's National Security Act related to core semiconductor technologies, highlights continuing concerns about industrial espionage amid heightened geopolitical tensions.
Taiwanese prosecutors announced the indictment of Chen, a former deputy manager at TSMC, on Monday. He is accused of copying 21 confidential documents related to Taiwan's national core technologies, with the intention of using this information for a semiconductor materials analysis company in China. Prosecutors are seeking a prison sentence of up to seven years for his actions.
The investigation into Chen began as part of a broader inquiry into espionage activities linked to a Hong Kong national, Ding Xiaohu. Chen allegedly collaborated with Ding between May 2023 and February 2024 to establish a company named CSMAC, aimed at analyzing semiconductor materials in China. This case is noteworthy as it intersects with the strategic importance of semiconductor technology amid escalating tensions between Taiwan and China.
The National Security Act of Taiwan, enacted in 2022, criminalizes the copying, use, or disclosure of trade secrets related to designated national core technologies, such as those used in advanced chip-making processes. This indictment is particularly significant as it is the first under this law involving an attempt to leak sensitive chip technologies.
TSMC's internal monitoring systems were able to identify the irregularities that led to the theft, and the company successfully recovered all documents involved after conducting an internal review. This highlights the effectiveness of TSMC's security measures in preventing potential leaks of crucial technologies.
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Taiwanese prosecutors indicted a former TSMC deputy manager for allegedly stealing 21 confidential chip technology documents to share with a Chinese firm. This case, the first under Taiwan's National Security Act related to core semiconductor technologies, highlights continuing concerns about industrial espionage amid heightened geopolitical tensions.