Ex-TSMC manager first to be indicted under National Security Act for allegedly attempting to leak core Taiwanese chipmaking technologies to China
A former TSMC (Taiwan Semiconductor Manufacturing Company) deputy manager has become the first individual indicted under Taiwan’s National Security Act for allegedly attempting to leak core chipmaking technologies to China. According to Taiwan’s High Prosecutors Office, the manager, identified as Chen, collaborated with a Hong Kong businessman to steal TSMC trade secrets with plans to establish a semiconductor materials analysis company called CSMAC in China.
The prosecution represents a historic milestone as the first National Security Act prosecution specifically targeting the leakage of Taiwan’s core semiconductor technologies to China. Although the alleged technology transfer ultimately failed, prosecutors emphasized the case’s significance to Taiwan’s national security. The investigation revealed that Chen and his associate copied 21 confidential items from TSMC, though the complete scope of stolen materials remains unclear from available reports.
This case highlights escalating concerns about industrial espionage targeting Taiwan’s semiconductor industry—a critical pillar of global technology supply chains. The successful prosecution underscores Taiwan’s commitment to enforcing strict penalties against attempts to compromise its advanced chipmaking capabilities, particularly as China aggressively pursues domestic semiconductor advancement.