TAIWAN – Three former engineers from Taiwan Semiconductor Manufacturing Company (TSMC) have been formally charged for allegedly stealing 2-nanometre chip technology, in a case authorities say threatens the competitiveness of Taiwan’s semiconductor industry. The engineers face severe penalties, with prosecutors seeking sentences ranging from 7 to 14 years in prison.
The case began when TSMC’s internal monitoring system detected unusual activity. Investigators found that Limin Chen, a former TSMC employee now working for a Japanese semiconductor firm, leveraged his past connections at TSMC to orchestrate the theft. Chen reportedly instructed three colleagues to take photos of sensitive 2nm process data displayed on company screens and send them to him, forming a sophisticated industrial espionage chain.
Chen had spent eight years at TSMC, handling advanced chip process improvements for 5nm and 3nm technologies before leaving the company in 2022. His new role in Japan was directly related to TSMC’s etching equipment, creating a clear conflict of interest and opportunity for intellectual property theft. Prosecutors named his accomplices as Wu Bingjun and Ge Yiping, who allegedly participated in the data theft under Chen’s direction.
National Security Implications
Authorities emphasised that stealing next-generation semiconductor technology represents a serious national security risk. The stolen 2nm process is considered a cornerstone of Taiwan’s semiconductor leadership, which underpins global electronics supply chains. TSMC has publicly stated it maintains a zero-tolerance policy toward actions that compromise company interests and has committed to strengthening internal security measures to prevent future breaches.
Prosecutors charged Chen and his accomplices under Taiwan’s National Security Law and Trade Secrets Act, seeking heavy sentences to reflect the severity of the crime. Analysts warn that such industrial espionage cases not only jeopardise corporate competitiveness but also threaten the broader economic and strategic stability of Taiwan.
Broader Industry Repercussions
Taiwanese officials and industry leaders say the case highlights the critical need for robust internal monitoring and intellectual property safeguards. The TSMC insider scandal serves as a stark reminder that even globally respected firms remain vulnerable to insider threats. With the global chip shortage and increasing geopolitical pressures, protecting proprietary technology has become a top priority for Taiwan and its partners.
This case has drawn international attention, underscoring the fine line semiconductor companies must walk between innovation, employee mobility, and national security. TSMC has pledged to continue its efforts to safeguard trade secrets while cooperating fully with authorities to ensure justice is served.