TSMC industrial espionage saga heading to verdict next month in unprecedented Taiwan… is attracting attention across the tech world. Analysts, enthusiasts, and industry observers are watching closely to see how this story develops.
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Most of the political ping-pong revolving around the black hole of AI concerns the sale and tariffs of accelerator cards, but there are many other stakes in play. UDM Money is reporting that one of the three landmark cases involving the alleged theft of trade secrets from TSMC has run through investigative and court proceedings, and a verdict is scheduled for April 27.
The case is one of three related indictments pertaining to former TSMC engineer Chen Li-ming, who allegedly orchestrated industrial espionage for Tokyo Electron Taiwan. Li-ming worked in yield management at TSMC and switched jobs to the marketing department at the Japanese firm, where he allegedly coordinated espionage in two separate operations.
The remarkable nature of the cases is due to the Taiwanese courts invoking the National Security Act for the first time in the context of semiconductor manufacturing, first in charging Chen Li-ming and his associates (on two separate counts), and Tokyo Electron itself. If this is all sounding familiar, chances are you’re thinking of the separate, ongoing trade secret indictment against Intel engineer Wei-Jen Lo.
The Li-ming case that is about to conclude hails from August 27 and evaluates allegations that, after he joined Tokyo Electron, around 2023, he convinced TSMC engineers Wu Bing-chun and Ko Yi-ping to syphon away key technical information about 2 nm processes. This charge could result in 14 years of prison time for Li-ming, nine years for Bing-Chun, and seven years for Yi-ping. The data stealing was presumably to help Tokyo Electron become a supplier for TSMC.
That’s not Li-Ming’s only concern, however. A second case that kicked off in January discusses his involvement in getting another TSMC employee, Chen Wei-chieh, to photograph trade secrets regarding 14nm chip tech innovation, with the knowledge of a Tokyo Electron manager with the surname Lu.
This second civil case covers not only the data theft but also the destruction of evidence, as apparently the trio shared their information on a cloud-sharing platform. The prizes for this endeavour could be as severe as seven years for Li-ming, close to nine for Wei-Chieh, and one for Lu. The recent nature of that indictment means that the investigation or court proceedings are still ongoing, and no sentence date has been set.
Taiwan courts seemingly add up sentences for related charges, with a 20-year cap. Given the groundbreaking nature of this case, Li-ming could still be staring down the barrel of two decades in prison. As for Tokyo Electron Taiwan, its own case could cost the company a fairly modest NT$145 million, or about $4.52 million / €3.95 million, for “[failing] to take adequate steps to prevent the illegal acts.” The original fine was NT$120 million, but it got a NT$25 million bonus after the most recent indictment.
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Bruno Ferreira is a contributing writer for Tom’s Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He’s obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he’s usually playing games, or at live music shows and festivals.
Why This Matters
This development may influence user expectations, future product strategy, and the competitive balance inside the broader technology industry.
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Looking Ahead
The full impact will become clearer over time, but the story already highlights how quickly the modern tech landscape can evolve.
Observers will continue tracking the next steps and how they affect products, users, and the wider market.
