The two cases involving alleged theft of TSMC's 2nm trade secrets have indeed taken different paths: the former engineers' case has resulted in indictments and potential lengthy prison sentences, while the retired executive's investigation is ongoing, and he may avoid prosecution due to the nature of his access and a potential US "diplomatic intervention".
Case 1: Former Engineers
In August 2025, Taiwanese prosecutors indicted a former TSMC employee, Chen, who had joined Japan-based chip equipment supplier Tokyo Electron, and two current TSMC engineers, Wu and Ko.
- Allegations: Chen allegedly solicited TSMC trade secrets related to the 2nm process from Wu and Ko to help Tokyo Electron secure more contracts with TSMC.
- Status: The three individuals were detained and indicted. The Intellectual Property and Commercial Court ordered their continued detention due to fears they might destroy evidence or collude.
- Potential Sentences: Prosecutors are seeking significant prison terms for the involved parties:
- Chen: 14 years.
- Wu: 9 years.
- Ko: 7 years.
- Outcome: Tokyo Electron conducted an internal investigation and subsequently dismissed the personnel involved.
Case 2: Retired Executive
A separate, ongoing national security probe was launched in November 2025 into Wei-Jen Lo, a high-ranking TSMC executive who retired in July and then joined Intel in October as a Vice President of R&D.
- Allegations: Lo allegedly took more than 80 boxes of confidential materials and handwritten notes related to TSMC's 2nm and A16 processes upon his departure.
- Status: The investigation is currently focused on determining if an intentional or unlawful transfer of trade secrets to a foreign entity occurred. The case is complicated by Intel CEO denials and potential "diplomatic intervention" by the US government to prevent his prosecution in Taiwan.
- Bottom Line: Taiwan's National Development Council Minister, Yeh Chun-hsien, a TSMC board member, stated that Lo had been reassigned more than a year before retirement and would not have had access to the company's "core critical technology" at that time, suggesting he might not face heavy charges under the strict National Security Act.
Probe launched into alleged theft of TSMC secrets by ex-executive - Focus Taiwan
Prosecutors have launched an investigation into allegations that a former executive of Taiwan Semiconductor Manufacturing Co. (TSMC) stole the chipmaker's secrets related to its advanced processes and transferred them to a foreign entity.
focustaiwan.tw
