[News] TSMC’s 2nm Leak Update: 3 Engineers Indicted for Stealing Core Tech, Facing Up to 14 Years

Shortly after the TSMC 2nm leak involving former and current staff came to light, Taiwan’s High Prosecutors Office indicted three engineers on August 27 for misappropriating national core technology secrets. Prosecutors are seeking 7–14 year prison terms under national security and trade secret laws, according to the Economic Daily News.

As Liberty Times points out, TSMC said the investigation confirmed the defendants violated the company’s data transmission and confidentiality rules by leaking classified information on its 2nm process, The report, citing TSMC’s remarks, adds that twelve pages contained national core technology trade secrets, prompting prosecutors to press charges under national security statutes based on individual criminal violations.

The case is especially sensitive—not just due to TSMC’s cutting-edge 2nm process, which is going to enter mass production later this year, but also because a former staffer involved now works for Tokyo Electron (TEL), a key TSMC equipment supplier tied to Rapidus, Japan’s state-backed 2nm competitor.

TSMC 2nm Leak: The Full Story

The Economic Daily News report suggests that Chen, a former yield engineer at TSMC’s Fab 12 who later joined Tokyo Electron’s marketing team, was well-versed in TSMC’s confidentiality rules and supplier secrecy protocols.

However, Chen allegedly leveraged his connections with current TSMC employees Wu, Ge, and Liao to access classified national core technology files. He then photographed and copied the materials to help TEL enhance its etching equipment and win contracts for TSMC’s 2nm production lines, the report adds.

TSMC, according to the Economic Daily News, discovered the breach through internal investigations and filed charges with the High Prosecutors Office on July 8. After intensive interrogations of the three detained defendants and witnesses, plus analysis of digital records and evidence, prosecutors concluded the trio’s guilt was clear, as indicated by the report.

Notably, following the incident, TechNews reported that Tokyo Electron President Toshiki Kawai is expected to visit Taiwan in early September to meet with TSMC executives during SEMICON Taiwan.

Read more

• [News] TSMC’s 2nm Data Leak Exposes Fragile Triangle: TEL, Rapidus, and Taiwan-Japan Semiconductor Clash
• [News] TSMC Reportedly Fires Staff over Suspected 2nm Leak Ahead of Mass Production

(Photo credit: TSMC)