Former Executive Charged in TSMC Technology Leak Attempt as Taiwan Strengthens Vigilance Against Chinese Espionage

Attempted Theft of Cutting-Edge Semiconductors Discovered, Former Executive Faces Seven-Year Prison Sentence
The Taiwan High Prosecutors Office announced that it has charged a former deputy director of TSMC (Taiwan Semiconductor Manufacturing Company), the world's largest semiconductor foundry, with violations of the National Security Maintenance Act and the Trade Secrets Act.

According to the indictment, the defendant was recruited through a spy network linked to the Chinese Communist Party and allegedly duplicated and took 21 documents, including confidential TSMC documents, without authorization as part of a plan to establish a new company and recruit talent in China. An internal investigation detected the wrongdoing, preventing any actual technology leak to the outside. The prosecution has strongly condemned this as a serious crime that undermines Taiwan's economy and the international competitiveness of its semiconductor industry.

The prosecution has identified the defendant by the surname Chen and is seeking a seven-year prison sentence.

Rising National Security Risks from Red Terror and Legal Offensive

At the ruling party's annual conference, President Lai Ching-te cited the military and political pressure from China, as well as the "legal warfare" being waged by the Chinese side, as significant concerns.

It has been pointed out that the new legal framework established by China could extend its reach to people living outside Taiwan, potentially serving as a basis for detaining or legally pursuing individuals who oppose China.

Taiwan emphasizes its stance against interference in areas beyond its sovereignty and jurisdiction, but the conflict over cutting-edge computing technology and national security is becoming increasingly complex.

Accelerating Global Expansion and Challenges in Physical AI

As the movements for confidentiality protection and security intensify, TSMC is vigorously promoting its business expansion in the global market.

In response to the rapid growth in demand for AI (artificial intelligence), the company has significantly increased its investment to enhance production capacity at its Arizona facility and is establishing a rapid product supply system through the transition to the latest 3-nanometer process.

Furthermore, while strictly adhering to China's export regulations, TSMC continues its transactions and is establishing a next-generation growth foundation in the realm of "physical AI" chips that operate in conjunction with the real world, including through its image sensor business with the Sony Group.

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