Story perspectives

Engineer Sentenced 10 Years, Tokyo Electron Fined for 2nm Leak

4/28/2026

Summary

Story summary

Taiwan’s corporate prosecution under the National Security Act cited failure to supervise staff and storage of TSMC secrets on a cloud.
TSMC engineer Chen Li-ming was sentenced to 10 years in New Taipei City for leaking 2-nanometre process trade secrets.
Tokyo Electron Taiwan was fined NT$150 million, with possible suspension if it pays NT$100 million to TSMC and NT$50 million to the treasury.
TSMC pledged stronger controls and warned national core technologies remain vulnerable.

History

Historical Context

In 1998, Japan’s Ministry of International Trade and Industry fined Tokyo Electron for illegal lithography exports to China, prompting tighter export rules. Founded in 1963, the company rode Japan’s 1980s semiconductor dominance—about 50% market share—and now supplies roughly 30% of global fab equipment. Taiwan’s National Security Act now targets TSMC and Tokyo Electron Taiwan, heightening industry legal risk.

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Story summary

Taiwan’s corporate prosecution under the National Security Act cited failure to supervise staff and storage of TSMC secrets on a cloud.
TSMC engineer Chen Li-ming was sentenced to 10 years in New Taipei City for leaking 2-nanometre process trade secrets.
Tokyo Electron Taiwan was fined NT$150 million, with possible suspension if it pays NT$100 million to TSMC and NT$50 million to the treasury.
TSMC pledged stronger controls and warned national core technologies remain vulnerable.

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