Taiwan charges former TSMC employee over alleged attempted tech leak to China

Taiwanese prosecutors have charged a former TSMC employee with stealing what they described as the chipmaker's core technology and trying to leak it to China.

The Taiwan High Prosecutors Office's Intellectual Property Branch said Monday that the man, identified by the surname Chen, was charged under the National Security Act and the Trade Secrets Act. Prosecutors described it as Taiwan's first case of its kind.

Prosecutors said Chen worked as a deputy manager at TSMC from May 2023 to February 2024. They alleged that he conspired with a Chinese man to set up a chip company in China.

According to prosecutors, the plan was to recruit Taiwanese semiconductor workers and have them enter Taiwan's semiconductor industry to send technology back to the Chinese company. Prosecutors said this would gradually weaken Taiwan's competitive position in the global chip industry.

Prosecutors alleged that Chen copied 21 TSMC documents containing national security and general trade secrets to show his expertise to Chinese financial backers and technical experts. They said he took the documents home to study and intended to use them in China.

TSMC found irregularities and began an investigation, prosecutors said. After reviewing electronic records and physical evidence, prosecutors said they determined the evidence against Chen was clear.

Prosecutors said they are seeking a seven-year prison term. They also said Chen's alleged co-conspirator died before he could be prosecuted.