TAIPEI (TVBS News) — Prosecutors at the Taiwan High Prosecutors Office's Intellectual Property Branch, a specialized unit handling IP crimes, seek a NT$120 million (around US$3.87 million) fine against Tokyo Electron Limited (東京威力科創). Prosecutors announced Tuesday (Dec. 2) the company allegedly violated national security laws and three other charges. Authorities accused former engineer Chen Li-ming of stealing Taiwan Semiconductor Manufacturing Company's (TSMC, 台積電) 2-nanometer technology trade secrets.
Prosecutors asserted Tokyo Electron failed to prevent the theft of advanced semiconductor manufacturing technology from TSMC, the world's largest contract chipmaker. The company did not implement adequate safeguards to stop Chen from accessing and stealing proprietary 2-nanometer chip technology. Prosecutors hold Tokyo Electron legally accountable for the security breach involving cutting-edge semiconductor manufacturing processes.
Tokyo Electron's parent company, a major Japanese semiconductor equipment manufacturer, expressed regret over the incident and apologized to stakeholders. The company pledged to strengthen its compliance system and audit mechanisms to prevent future security breaches. Tokyo Electron committed to implementing more rigorous internal controls following the alleged theft of TSMC's proprietary technology.
Prosecutors pointed out Tokyo Electron did not provide evidence of specific preventive measures against intellectual property theft. The company only offered general warning regulations rather than concrete security protocols to protect trade secrets. Prosecutors hold Tokyo Electron legally accountable for inadequate safeguards that enabled the alleged theft of TSMC's 2-nanometer technology.
The company stated the incident has not impacted operations and plans to enhance its information security system. Tokyo Electron will implement 24-hour monitoring by internal and external cybersecurity experts to prevent future data leaks. The enhanced security measures aim to protect sensitive semiconductor technology and trade secrets from unauthorized access.
Tokyo Electron vowed to work collectively with all employees to enhance corporate value and meet stakeholders' expectations. The company emphasized its commitment to rebuilding trust following the alleged security breach involving TSMC's proprietary technology. Tokyo Electron aims to restore confidence among clients, partners, and investors in the semiconductor equipment industry.
The situation highlights ongoing challenges companies face in safeguarding trade secrets in the competitive semiconductor industry. Further developments are likely as the case progresses through Taiwan's legal system and courts review the evidence. The case underscores growing concerns about intellectual property protection in Taiwan's critical semiconductor manufacturing sector. ◼ (At time of reporting, US$1 equals approximately NT$31)
