Taiwan court fines Tokyo Electron unit in TSMC secrets case

A Taiwan court on Monday, April 27, penalized the Taiwan unit of Japan’s Tokyo Electron and sentenced five individuals in a trade secrets case connected to Taiwan Semiconductor Manufacturing Company (TSMC), according to officials and case details. The court imposed a fine of T$150 million ($5 million) on Tokyo Electron’s Taiwan unit and issued prison terms that ran up to 10 years.

Officials described the decision as a major ruling in Taiwan involving alleged breaches tied to “national core technologies” under the National Security Act. The proceedings centered on claims that sensitive chip technology belonging to TSMC was obtained unlawfully, placing the case among the island’s most prominent trade secrets prosecutions referenced in the court record.

Key defendant and prosecutors’ allegations

Prosecutors identified Chen Li-ming as a central figure in the case. Chen previously worked for both TSMC and Tokyo Electron, prosecutors said.

According to prosecutors, Chen was indicted in August 2025 and accused of improperly obtaining TSMC’s confidential chip technology. The prosecution alleged that Chen and other defendants sought to use the information to help Tokyo Electron secure additional equipment orders from TSMC.

Sentences and pleas recorded by the court

In its sentencing, the court handed Chen a 10-year prison term. Three other former TSMC employees received prison sentences ranging from two to six years.

A former Tokyo Electron employee was sentenced to 10 months, with the term suspended for three years. The court’s penalties also included the corporate fine against Tokyo Electron’s Taiwan unit.

The court recorded guilty pleas from four of the five individual defendants, including Chen, and also from Tokyo Electron’s Taiwan unit. Information provided did not specify the plea of the remaining individual defendant.

Company positions and unresolved questions

After the verdict, neither Tokyo Electron nor TSMC commented on the court’s decision. Tokyo Electron had previously said the matter would not affect its financial results and said it would strengthen its compliance systems.

TSMC was described in the case as the world’s largest contract manufacturer of advanced AI chips. The allegations, as presented by prosecutors, linked the claimed misuse of trade secrets to commercial efforts involving equipment procurement between a major chipmaker and a key supplier.

It remains unclear from the information provided whether any of the defendants will pursue further legal steps, including appeals, or when additional statements from the companies might be issued.