Former worker at a Tokyo Electron subsidiary under suspicion for data misappropriation
In a significant development in the world of semiconductor manufacturing, a former employee of Tokyo Electron Ltd., a major Japanese chip equipment supplier, has been accused of illegally acquiring confidential information from Taiwan Semiconductor Manufacturing Co. (TSMC). The incident, which involved sensitive data related to TSMC's cutting-edge 2-nanometer (2nm) chips, has been confirmed and is currently under active investigation.
Key details and updates on the case are as follows:
- Incident Location: The searches, conducted by Taiwanese public prosecutors, were carried out in the northern area of Taiwan, with the subsidiary of Tokyo Electron where the searches were conducted located in Hsinchu. The incident itself is reported to have taken place at a cafe.
- People Involved: The former TSMC employee, who left the company before joining Tokyo Electron's Taiwanese subsidiary, is at the centre of the investigation. An engineer from TSMC, who was met by the former employee at the cafe, is also implicated, as they displayed confidential data from TSMC on a laptop.
- Theft Method: The former employee is accused of taking numerous photos of the confidential information from TSMC. Internal investigations at TSMC found suspicious short logins to their systems, with some employees accessing and photographing confidential 2nm process documents covertly.
- Legal and National Security Implications: The theft is recognized as economic espionage under Taiwan’s National Security Act, with heavy penalties that can reach up to 12 years imprisonment and significant fines. The Taiwanese government treats the matter as a national security issue involving “national core critical technologies” since 2nm and advanced semiconductor technology are key to Taiwan’s technological edge.
- Corporate and Market Impact: Tokyo Electron has publicly acknowledged the investigation, fired the implicated employee, and pledged cooperation. TSMC has reaffirmed its commitment to enhancing security to protect its intellectual property. The case caused Tokyo Electron’s shares to drop about 2.5%.
- Nature of the Leak: Despite the severity, Taiwanese officials indicated the stolen data, while sensitive, is compartmentalized within TSMC, making it difficult for competitors to fully exploit the technology on their own.
- Geopolitical Context: The case highlights increasing risks of semiconductor espionage amid intense competition in advanced chip manufacturing, especially involving Japan, Taiwan, and China.
In summary, the theft of TSMC’s 2nm chip technology information by insiders connected to Tokyo Electron is a confirmed and serious incident under active legal and government investigation. Several employees have been fired or detained, and the case remains a high-profile national security and corporate issue as of August 2025.
The stolen data, originating from TSMC's 2-nanometer chips, was captured through numerous photos taken by a former TSMC employee. This former employee, now under investigation, had previously left TSMC to join Tokyo Electron's Taiwanese subsidiary. The general news surrounding this incident has been widely reported, with media outlets discussing its implications in the field of data-and-cloud-computing and crime-and-justice.
