The indictment follows months of investigation after a former employee of Tokyo Electron’s Taiwan unit was charged earlier this year for allegedly stealing sensitive information from TSMC, one of the world’s most advanced chip manufacturers. Authorities said this case represents the first corporate indictment under Taiwan’s National Security Act concerning the protection of national core critical technologies.

Prosecutors stated that the company could face penalties of up to T$120 million if convicted, underscoring the seriousness with which Taiwan treats industrial espionage and the safeguarding of semiconductor innovation. The semiconductor sector is central to Taiwan’s national security framework, given its leading role in global chip supply chains.

Investigators said they reviewed interviews with the former employee, identified only by his surname Chen, as well as testimonies from multiple Tokyo Electron staff members. After examining internal documents and written responses submitted by the company, authorities concluded that Tokyo Electron’s Taiwan unit had a legal obligation to supervise Chen and ensure strict measures were in place to prevent misconduct involving sensitive technologies.

According to the prosecution, while the company maintained general internal rules and issued standard cautionary notices to employees, it did not provide evidence of detailed oversight procedures or targeted compliance mechanisms designed to prevent the misappropriation of critical trade secrets. This lack of concrete controls contributed to the decision to hold the corporate entity legally accountable for failing to prevent the alleged offence.

Tokyo Electron and its Taiwan branch have not yet issued public comments on the latest indictment. The company previously said, following the initial charges against the ex-employee, that it had not confirmed any organisational involvement in the case and would cooperate with investigative authorities.

The broader investigation has drawn significant attention within Taiwan’s semiconductor sector due to its connection with TSMC’s highly advanced 2-nanometer process technology. In August, prosecutors charged three individuals, including the former TSMC employee Chen, accusing them of attempting to obtain confidential information to help Tokyo Electron compete more effectively for supplier contracts tied to TSMC’s next-generation chipmaking processes.

Authorities said the ex-employee, after joining Tokyo Electron, reached out to former colleagues at TSMC to request detailed technical data and trade secrets related to cutting-edge manufacturing steps. These details, prosecutors noted, form part of Taiwan’s category of national core critical technologies, which are protected under stringent laws aimed at preventing foreign or commercial exploitation.

Taiwan has recently intensified efforts to protect its semiconductor intellectual property as global competition in the microchip industry heightens. With demand for more efficient and powerful processors growing across sectors such as artificial intelligence, defence, and consumer electronics, the safeguarding of advanced manufacturing knowledge has become a strategic priority for the government.

The case also reflects the growing involvement of prosecutors in corporate governance issues linked to technology security. By holding a corporation responsible for insufficient internal controls, authorities are signaling an expanded interpretation of compliance obligations for companies operating within sensitive technology sectors.

Legal analysts say this prosecution could prompt multinational firms in Taiwan to reassess their internal monitoring frameworks, particularly those that work closely with semiconductor leaders, to avoid similar liabilities. Industry experts note that firms interacting with TSMC or other strategic technology providers may face tightened oversight in the future.

The investigation remains ongoing as prosecutors continue examining whether additional individuals or entities may have played a role in the alleged attempt to acquire restricted information. Taiwan’s judiciary has emphasised that the protection of national technology assets will remain a priority as the island strengthens its global leadership in semiconductor innovation.

Taiwanese investigators intensify scrutiny in a high-profile case involving a former TSMC executive accused of leaking sensitive information, as both companies involved issue firm and measured responses.

Taiwan authorities have launched a significant investigation into alleged trade secret violations, carrying out raids at the residences of a former senior executive of Taiwan Semiconductor Manufacturing Company.

The probe centers on Wei-Jen Lo, a long-time industry figure who previously held a top leadership role at TSMC, and who joined Intel earlier this year following his retirement from the chipmaking giant.

Prosecutors confirmed that investigators executed a search warrant at two properties belonging to Lo, where computers, storage devices, documents, and digital equipment were seized for detailed examination.

Authorities stated that the operation was conducted under Taiwan’s National Security Act, reflecting the sensitivity surrounding advanced chip technologies and the strategic importance of semiconductor intellectual property.

Officials added that a court approved a separate petition to secure Lo’s financial assets, including shares and real estate, as a precautionary measure while the investigation continues.

TSMC had earlier filed a formal lawsuit in Taiwan’s Intellectual Property and Commercial Court, alleging that there is a high possibility the former executive transferred or disclosed confidential materials to Intel.

The company expressed concern that proprietary information related to cutting-edge chip production, including knowledge connected to its leading-edge 5-nanometer, 3-nm, and 2-nm manufacturing technologies, may have been compromised.

Lo, who worked at TSMC for more than two decades and played a key role in steering advanced process development, has not issued a public statement addressing the allegations made against him.

Intel, which rehired Lo in October after his retirement from TSMC, offered a strong denial of the accusations, stating that the company has seen no indication that its new employee engaged in any misuse of confidential data.

The U.S. chipmaker emphasized that it upholds rigorous internal standards designed to prevent the use or transfer of proprietary materials, and noted that compliance policies are actively monitored and applied across its global operations.

Intel added that Lo maintains a long-standing reputation within the semiconductor sector for professional integrity and technical excellence, highlighting that the mobility of talent between companies is common and essential for innovation in the industry.

The company also explained that it routinely trains employees on intellectual property protection, and that it remains committed to cooperating with lawful processes while safeguarding its own corporate standards.

Prior to his two-decade tenure at TSMC, Lo had spent 18 years working at Intel, giving him extensive experience across both leading chip manufacturers and contributing to his status as a respected figure in the field.

Taiwan’s investigation comes at a time when global competition in semiconductor technology is intensifying, with governments and companies paying close attention to the movement of experts, patents, and advanced manufacturing techniques.

The case has triggered discussions within the technology community about the balance between open talent mobility, and the need for companies to protect strategic knowledge that forms the foundation of their most advanced technologies.

Authorities in Taiwan have not issued a timeline for the next steps in the inquiry, but signaled that the case will be handled with thoroughness given the sensitive nature of the semiconductor sector.

As the investigation proceeds, industry observers will be watching closely for new developments, particularly as both companies involved continue to navigate a complex global environment defined by innovation, competition, and high-level expertise.