TSMC Ex-Manager Accused of Leaking Core Tech to China; Company Cites Ongoing Probe

Taiwan Semiconductor Manufacturing Company (TSMC) is facing allegations of core technology leakage, with a former deputy manager accused of collaborating with a Hong Kong-based Chinese national to establish a semiconductor materials analysis company in mainland China. The individual, identified as a former deputy manager surnamed Chen, allegedly conspired with Ding Xiaohu, a Chinese national, to launch "China Semiconductor Materials Analysis Company" (CSMAC) and implement a "Blue Sea Project."

Prosecutors claim the scheme aimed to build China's semiconductor industry chain by recruiting Taiwanese semiconductor talent to work in China. Chen is accused of illegally replicating 21 pieces of TSMC's national core key technology and general trade secrets without authorization. He allegedly took these documents home to study, intending to use them in China to gain the trust of mainland financiers and technical experts.

The investigation revealed that Chen worked as a deputy manager at TSMC and, between May 2023 and February 2024, allegedly planned this venture with Ding. The "Blue Sea Project" was designed to leverage returning talent to gradually establish China's semiconductor industry infrastructure.

The High Prosecutors Office's Intellectual Property Prosecution Division has indicted Chen on charges including violations of the National Security Act and Trade Secrets Act. The prosecution is requesting a seven-year prison sentence, highlighting the severity of the alleged breach of critical technological information.

“

This is an ongoing investigation case, and we are unable to comment.