The Taiwan High Prosecutors Office Intellectual Property Branch yesterday indicted three individuals and Tokyo Electron Taiwan Ltd for stealing Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) 14-nanometer (14nm) technology secrets.
The individuals included Chen Li-ming (陳力銘), a former TSMC engineer who worked at Tokyo Electron Taiwan, a TSMC employee surnamed Chen (陳), and a Tokyo Electron Taiwan employee surnamed Lu (盧), the prosecutors office said in a statement.
The first two were charged with reproducing trade secrets relating to national core key technologies under the National Security Act (國家安全法), while Lu and Tokyo Electron Taiwan were charged with destroying evidence in a criminal case, the statement said.
Photo: Ann Wang, Reuters
The case came to light when prosecutors were investigating Tokyo Electron Taiwan for the alleged theft of TSMC trade secrets related to its 2nm process. During the investigation, it was discovered that the company’s cloud storage contained additional trade secrets linked to TSMC’s 14-nanometer technology, prosecutors said.
Prosecutors said Chen Li-ming confessed after being presented with evidence and identified an accomplice, also surnamed Chen, who has yet to admit guilt. They are seeking prison sentences of seven years and eight years and eight months, respectively, for the two defendants.
Prosecutors added that Lu attempted to delete evidence after learning that TSMC had uncovered Chen Li-ming’s actions and has continued to deny any wrongdoing. They are seeking a one-year prison sentence for Lu.
Prosecutors are also seeking a NT$25 million (US $794,356) fine against Tokyo Electron Taiwan, while also noting that the company cooperated with the investigation, which aided the case.
Chen Li-ming, along with two others, were indicted in August last year for stealing TSMC’s 2nm technology. The three are currently being detained.
Tokyo Electron Taiwan was indicted last month on four violations of the Trade Secrets Act (營業秘密法) and National Security Act for failing to properly supervise Chen Li-ming, with prosecutors seeking a total penalty of NT$120 million.
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