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Taiwan indicts ex-TSMC engineer, others in 14nm chip trade theft
Three individuals and Tokyo Electron Taiwan have been indicted in Taiwan for allegedly stealing trade secrets related to TSMC’s 14-nanometer chip technology.
The accused include Chen Li-ming, a former TSMC engineer who later joined Tokyo Electron Taiwan, a current TSMC employee surnamed Chen, and a Tokyo Electron employee surnamed Lu.
Prosecutors charged Chen Li-ming and the TSMC employee with reproducing trade secrets, while Lu and Tokyo Electron Taiwan face charges for destroying evidence.
Authorities uncovered the 14nm technology theft while investigating a separate case involving TSMC’s 2nm process in August 2025.
Prosecutors said Chen Li-ming confessed and identified an accomplice, but the accomplice has not admitted guilt, and Lu has denied wrongdoing.
They are seeking prison sentences of seven years and eight years, eight months, and a NT$25 million (US$794,400) fine for Tokyo Electron Taiwan.
Tokyo Electron Taiwan was also indicted in December 2025 for failing to supervise an employee and faces additional penalties, and prosecutors noted the company cooperated with the investigation.
All three defendants are currently being detained.
🔗 Source: Focus Taiwan
🧠 Food for thought
Implications, context, and why it matters.
TSMC’s 14nm node still matters even as the tech ages
- TSMC now builds top-end chips on newer nodes. Its 14/16nm processes are an earlier-generation manufacturing node measured in nanometers. They still see steady demand in automotive chips, consumer electronics, and Internet of Things (IoT) devices that do not need the densest transistors.
- Indictments tied to this node mean it still has value. Alleged theft rarely targets obsolete tech.
- Map which revenue streams depend on these mature processes to see whether the 14nm trade-secret case threatens current sales or only legacy production capacity.
Equipment makers need stronger insider threat programs as enforcement tightens
- Prosecutors charged Tokyo Electron Taiwan in December 2025 for failing to properly supervise an employee. They later charged the firm for allegedly destroying evidence. These cases make clear that Taiwanese authorities will hold equipment vendors, not only chipmakers, to account for intellectual property (IP) protection failures.
- Vendors in Taiwan’s chip supply chain should invest in data loss prevention systems, employee monitoring, plus compliance training. That reduces prosecution risk while protecting reputation.
- Prosecutors sought a NT$25 million fine, with criminal charges filed. Preventive security spending costs less than penalties or lost contracts.
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