Taiwanese prosecutors have indicted a former TSMC manager for allegedly attempting to steal trade secrets related to the island's core chipmaking technologies with the intent to transfer them to China. This marks the first prosecution under the National Security Act for such an alleged attempt, according to a spokesperson for Taiwan's High Prosecutors Office.
The indictment alleges that the former deputy manager, identified as Chen, collaborated with an individual in Hong Kong to illicitly acquire 21 confidential TSMC documents. These documents were reportedly copied and taken home by Chen for study, with the intention of using the information to establish a semiconductor materials analysis company in China named CSMAC. Prosecutors also suggest that Chen was exploring opportunities to recruit additional talent from Taiwan for this venture.
Chen has been in detention for approximately two months. If convicted, he could face a prison sentence of up to seven years. TSMC has reportedly recovered all the documents in question, and the company has stated that the attempt to transfer the technology was unsuccessful.
This incident occurs amidst heightened concerns over intellectual property theft targeting Taiwan's vital semiconductor industry. China, in particular, has been identified as a significant threat, with state-sponsored hackers reportedly seeking to obtain trade secrets. Previous instances have seen employees dismissed and legal action taken by Taiwanese authorities.
While China's memory maker CXMT has made strides in DRAM production, the island's dominance lies in high-performance logic chips. The potential transfer of advanced technology from TSMC, the world's largest and most advanced chipmaker, could significantly alter the competitive landscape in processor manufacturing.