TSMC Deputy Manager Charged with Leaking Core Tech for China's 'Project Blue Sea'

A former deputy manager at Taiwan Semiconductor Manufacturing Co. (TSMC) faces charges for allegedly leaking the company's core technologies and trade secrets. Prosecutors are seeking a seven-year prison sentence for the official, identified as Mr. Chen.

Chen is accused of collaborating with Ding Xiaohu, a Hong Kong resident, to establish a semiconductor materials analysis company in China. Their alleged plan, dubbed "Project Blue Sea," aimed to recruit Taiwanese semiconductor talent to work in China, gradually building the country's semiconductor industry chain.

To gain the trust of Chinese financiers and technical experts, Chen allegedly copied 21 pieces of TSMC's core national technology and general trade secrets without authorization. He reportedly took these documents home to study, intending to use them in China. TSMC detected the anomaly and has since retrieved all the illegally copied technical documents.

This case marks the first instance of alleged leakage of core national technology secrets to China. The investigation began as part of a broader inquiry into Ding Xiaohu's alleged activities in Taiwan, including developing an organization and gathering classified information. Ding passed away during the investigation, and prosecutors issued a non-prosecution order for him. The prosecution emphasized that TSMC's technological advantage is crucial for Taiwan's economy and semiconductor industry competitiveness, and Chen's actions severely endanger national technological security.

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Chen, knowing this, disregarded industry ethics and the competitive order, illegally obtained a large amount of trade secrets, attempting to assist the development of China's semiconductor technology. His actions have severely endangered national technological security, and therefore we request the court to impose a sentence of seven years imprisonment.