In a groundbreaking development, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, was embroiled in a case of “2-nanometer process leak” in August. The Intellectual Property Prosecution Division of the Taiwan High Prosecutors Office determined today (December 2) that Tokyo PowerTech Innovation was suspected of violating the National Security Law and other charges, adding to the prosecution in the first corporate case involving violations of the National Security Law and theft of core national key technologies.
The investigation into the “2-nanometer process leak” at TSMC began at the end of June 2025 when abnormal access behavior was detected by the internal data security monitoring system of TSMC, triggering an immediate alert. The investigation revealed that several engineers were using their mobile phones to capture confidential screen content through remote working, and were circulating 2-nanometer development data through unofficial channels, with suspicions even arising of data capture in external venues.
The Intellectual Property Prosecution Division of the Taiwan High Prosecutors Office stated that they had recently prosecuted Chen Li-ming, an employee of Tokyo PowerTech Innovation Co., Ltd (Tokyo PowerTech), as well as TSMC engineers Wu Bing-jun and Ge Yi-ping, for leaking 2-nanometer key technology, breaching the National Security Law and stealing TSMC’s core national key technology trade secrets.
The prosecution authorities determined that the three individuals were involved in offenses under the Trade Secrets Act and the National Security Law. After the prosecutor’s office filed charges, the division also signed for Tokyo PowerTech Innovation to determine if they were suspected of violating the National Security Law, among other charges, and instructed the Ministry of Justice Investigation Bureau’s Hsinchu City Investigation Station to verify the allegations. After the investigation, Tokyo PowerTech Innovation was found to be culpable of violations including the Trade Secrets Act and the National Security Law, totaling 4 charges for corporate criminal liability.
The investigation concluded today, and the prosecution sought additional charges against the defendants, with fines totaling NT$40 million, NT$8 million, NT$40 million, and NT$40 million, as well as requesting the enforcement of a penalty of NT$120 million.
After questioning Chen Li-ming and employees of Tokyo PowerTech Innovation, and comparing all the evidence and defense materials provided by Tokyo PowerTech Innovation, the prosecutors found that Tokyo PowerTech Innovation had a supervisory responsibility over Chen Li-ming according to the law. However, besides having general and warning provisions in their internal regulations, they lacked concrete evidence of implementing specific preventive management measures, thus failing to make every effort to prevent the misconduct and should bear the corporate criminal liability as stipulated by law.
The Intellectual Property Prosecution Division of the Taiwan High Prosecutors Office emphasized that in order to safeguard the country’s core key technology trade secrets and protect Taiwan’s economic lifeline, they will continue to work together with the industry to uphold the nation’s core competitiveness.