Taiwan Indicts Ex‑TSMC Manager Over Alleged Attempt to Send Core Chip Data to China

Overview

• Prosecutors indicted a former TSMC deputy manager surnamed Chen on July 20 for allegedly copying 21 confidential documents that prosecutors say included designated national‑core chip technologies.
• Chen has been detained since late May and faces charges under the National Security Act and the Trade Secrets Act with prosecutors seeking a prison term of up to seven years.
• TSMC's internal monitoring flagged irregularities, the company recovered all 21 copied documents, and prosecutors say no transfer of the materials to China occurred.
• Investigators allege Chen conspired with a Chinese recruiter tied to a claimed Nanning station operation to form a China‑based firm called CSMAC and to poach Taiwanese chip talent for a plan prosecutors call state‑directed recruitment.
• The case builds on earlier trade‑secret probes and reinforces Taiwan's legal and corporate push to protect advanced process know‑how, with wider checks on hiring, exits, and civil and criminal inquiries expected to continue.