Taiwan Court Convicts Five, Fines Tokyo Electron Unit T$150 Million in TSMC Trade Secrets Theft Case

A Taiwan court fined the local unit of Japan’s Tokyo Electron T$150 million ($5 million) and sentenced five defendants to jail terms of up to 10 years for the alleged theft of sensitive chip technology from TSMC, the world’s biggest contract manufacturer of advanced AI chips, Rappler reported.

The ruling, handed down on April 27, 2026, in New Taipei, Taiwan, involved charges under the National Security Act and stands as one of Taiwan's highest-profile cases of alleged breaches of national core technologies. Chen Li-ming, a former employee of both TSMC and Tokyo Electron, received a 10-year prison sentence.

Three other former TSMC employees were given sentences ranging from two to six years, while a former Tokyo Electron employee got a 10-month sentence suspended for three years. Prosecutors indicted Chen Li-ming and the other defendants in August 2025 for unlawfully obtaining TSMC trade secrets to help Tokyo Electron win more equipment orders from TSMC.

Chen Li-ming arrived at the Intellectual Property and Commercial Court in New Taipei City for the verdict, as captured in images from the scene, Rappler reported.

The case unfolded in Taipei’s sister city of New Taipei, highlighting tensions in the semiconductor industry. Neither Tokyo Electron nor TSMC immediately responded to requests for comment, according to Rappler.