New Taipei Court Convicts Five in TSMC Trade Secrets Case Under National Security Act

A court in New Taipei has handed down final sentencing in a high-profile legal battle concerning the protection of Taiwan's semiconductor industry. The ruling sees five individuals convicted and Tokyo Electron's local unit fined $5 million for allegedly stealing sensitive computer chip technology from Taiwan Semiconductor Manufacturing Company (TSMC). Prosecutors brought these charges under the National Security Act, signalling the state's classification of the stolen data as a critical national security asset rather than a simple commercial dispute.

The primary defendant, Chen Li-ming, a former employee of both TSMC and Tokyo Electron, received a ten-year prison sentence. The court determined that his actions, alongside those of four other co-defendants, involved unlawfully obtaining trade secrets to assist Tokyo Electron in securing equipment orders from TSMC. This prosecution underscores the severity with which authorities view the compromise of advanced technological assets central to the island's economic standing.

The remaining four defendants received prison terms ranging between ten months and six years. One of these sentences, a ten-month term, was suspended for three years. The convictions relate to the alleged theft of sensitive computer chip technology, the specifics of which have not been fully detailed in the available reports. The case is considered one of Taiwan's most prominent legal confrontations regarding its core technological infrastructure.

The judicial process began in August 2025, when prosecutors initially indicted Chen Li-ming and others on suspicion of unlawfully obtaining trade secrets. On 27 April 2026, the New Taipei court delivered its verdict, finalising the penalties for the defendants and the corporate entity involved. The timeline reflects a rapid judicial response to what the state identifies as a significant breach of security protocols within the manufacturing sector.

Neither TSMC nor Tokyo Electron has issued a comment regarding the ruling as of the report date. The lack of immediate response from the companies leaves the operational impact of the convictions on future equipment orders and supply chain dynamics unverified. However, the application of the National Security Act suggests that the legal framework governing this case is designed to deter future attempts to access or exploit such sensitive industrial data.

The outcome reinforces the government's stance that the security of advanced AI chip manufacturing capabilities is paramount. By utilising the National Security Act, the prosecution has framed the alleged theft not merely as corporate espionage but as a threat to national security. This approach highlights the increasing intersection between commercial technology transfer and state-level security concerns in the global semiconductor landscape.