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🇸🇬 Singapore /Technology

Taiwan charges ex-TSMC employee over attempted tech leak to China

From The Straits Times · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Taiwan prosecutors charged a former TSMC employee for attempting to leak the chipmaker's core technology to China.
  • The man, surnamed Chen, allegedly copied 21 company documents containing trade secrets to aid a Chinese partner in establishing a chip company.
  • Prosecutors seek a seven-year prison term in what they call Taiwan's first indictment for attempted transfer of national core critical technology trade secrets.

Prosecutors in Taiwan have charged a former TSMC employee with attempting to steal and leak the chipmaking giant's "core" technology to China. The man, identified only by his surname Chen, faces charges under the National Security Act and the Trade Secrets Act.

national security and general trade secrets

— Taiwan High Prosecutors Office’s Intellectual Property BranchDescribing the documents the former TSMC employee allegedly copied.

Chen, who worked as a deputy manager at TSMC from May 2023 to February 2024, allegedly conspired with a Chinese national to establish a chip company in China. Their plan involved poaching Taiwanese semiconductor talent and channeling technology back to the Chinese firm, which prosecutors claim would erode Taiwan's competitive edge in the global chip industry.

infiltrate Taiwan’s semiconductor industry and channel technology back

— Taiwan High Prosecutors Office’s Intellectual Property BranchExplaining the alleged plan to benefit a Chinese company.

To demonstrate his expertise to Chinese backers, Chen allegedly copied 21 TSMC documents containing "national security and general trade secrets." He took these documents home to study, but TSMC's investigation into "irregularities" uncovered the alleged plot. Prosecutors stated that evidence of Chen's crimes is clear and are seeking a seven-year prison sentence. This marks Taiwan's "first-ever indictment for attempted transfer of national core critical technology trade secrets" to China. Chen's alleged co-conspirator died before prosecution.

Taiwan’s leading competitive position

— Taiwan High Prosecutors Office’s Intellectual Property BranchDescribing the potential impact of the alleged tech leak.
DistantNews Editorial

Originally published by The Straits Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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