Tokyo Electron Taiwan won't appeal TSMC trade secrets ruling

Japan’s chip equipment maker Tokyo Electron said on May 21 that its Taiwan unit will not appeal a court ruling in Taiwan tied to a trade secrets case involving TSMC’s chip technology.

The statement came after Taiwan’s Intellectual Property and Commercial Court fined the unit T$150 million (US$5 million), in April over the case.

Tokyo Electron’s Taiwan unit said in a written response that it respects the judicial process and is taking the ruling seriously.

On December 2025, Tokyo Electron said it will strengthen compliance across its subsidiaries after its Taiwan unit, Tokyo Electron Taiwan was indicted for allegedly stealing confidential 2nm technology from TSMC.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Taiwan treated this as a national security case

Taiwan used its National Security Act for the first time in a trade secret case tied to “national core critical technologies” 1.
Chen Li-ming, a former TSMC employee who later joined Tokyo Electron, got 10 years in prison. Three other former TSMC employees also received jail terms 1.
Prosecutors said the stolen data was meant to help Tokyo Electron secure more equipment orders from TSMC 2.
The court found Tokyo Electron’s Taiwan unit did not properly oversee staff. Earlier, Tokyo Electron said it had not confirmed any organizational involvement 3, 4.
Judges also weighed Tokyo Electron’s settlement with TSMC. TSMC had said it was willing to forgive the damages 1.

The verdict sends a warning through the chip supply chain

By bringing the case under national security law, Taiwan set a legal marker that treats some chipmaking know-how as a strategic state asset 3, 1.
The decision raises compliance risk across the semiconductor supply chain. A company can face liability if a court decides it failed to oversee employees in cases involving protected trade secrets 3.
The verdict captures Taiwan’s hard line on leaks of advanced technology as competition grows in leading-edge semiconductors 3.
Global chip equipment suppliers may now need to treat employee conduct as a national security risk in Taiwan when protected trade secrets are involved 3, 1.