TAIPEI (Taiwan News) — Three former or current engineers have been detained on suspicion of leaking Taiwan Semiconductor Manufacturing Co.’s 2-nanometer process technology, which is slated to enter mass production later this year, prosecutors said Tuesday.
The suspected breach was uncovered during a routine internal investigation by TSMC, which then requested that prosecutors conduct searches and interviews between July 25-28. The three individuals were detained and held incommunicado on suspicion of violating the National Security Law.
The alleged ringleader, a former engineer surnamed Chen (陳), previously worked on advanced process technologies and system integration at TSMC. After leaving the company, he joined Tokyo Electron, a longtime TSMC semiconductor equipment partner, per Liberty Times.
Chen allegedly contacted TSMC R&D personnel and asked them to display confidential process diagrams on their computer screens, which he then photographed using his mobile phone.
Prosecutors said Chen took 700 photos from one engineer surnamed Wu (吳) and 300 more from another engineer, also surnamed Wu (吳). Other employees were found to have shared less sensitive diagrams but were not detained, as their offenses were considered minor.
Under Taiwan’s National Security Law, the National Science Council designates integrated circuit manufacturing technologies with process sizes of 14 nm or smaller as core technologies. Theft of such trade secrets carries a maximum penalty of 12 years in prison and an NT$100 million (US$3.3 million) fine. This is the first case prosecuted under the revised law since core technology protections were introduced three years ago.
TSMC’s 2nm process is currently the most advanced in the global semiconductor industry. The company produces the vast majority of the world’s leading-edge chips and maintains a widening lead over competitors such as Samsung, Intel, and Japan’s Rapidus.
TSMC reiterated its zero-tolerance policy for trade secret violations and actions that harm the company’s interests. It said it will continue to strengthen internal controls and fully cooperate with law enforcement to protect its competitive advantage.
