Taiwan Court Fines Tokyo Electron Unit $5 Million and Jails Ex-TSMC Employee for Trade Secret Theft

Context TSMC is the world’s largest contract maker of advanced chips. Tokyo Electron is a Japanese supplier of semiconductor equipment. In August 2025 prosecutors charged Chen Li‑ming, a former employee of both firms, with illegally obtaining TSMC’s confidential chip designs to help Tokyo Electron win more orders. The case was pursued under Taiwan’s National Security Act, which guards critical technology from theft.

Key Facts The court ordered Tokyo Electron’s Taiwan subsidiary to pay a fine of $5 million. Chen Li‑ming received a ten‑year prison sentence. A second former Tokyo Electron employee in New Taipei was given a ten‑month jail term, suspended for three years. Three other defendants were sentenced to terms ranging from two to six years.

What It Means The penalties signal that Taiwan will enforce tough consequences for trade‑secret theft involving its chip sector. Companies doing business with TSMC may face heightened scrutiny over employee mobility and information security. The outcome could deter similar attempts to transfer sensitive technology to foreign equipment makers.

Watch for any appeals from the defendants and for further investigations into whether other former employees are implicated in the case.