NEW TAIPEI CITY, TAIWAN — Taiwan's Intellectual Property and Commercial Court sentenced former Taiwan Semiconductor Manufacturing Company employee Chen Li-ming to 10 years in prison for trade secret theft and fined the local unit of Tokyo Electron 150 million new Taiwan dollars, or 5 million U.S. dollars. Four other defendants received sentences of up to six years in jail.

Three other former TSMC employees were sentenced to terms ranging from two to six years, while a former Tokyo Electron employee received a 10-month prison sentence suspended for three years. The sentences were imposed under Taiwan's national security act and other statutes.

Prosecutors indicted Chen and others on alleged trade secret theft in August 2025. The case centers on accusations that he used his relationships with former TSMC colleagues to illegally access and collect the chip maker's trade secrets.

Judge Chang Ming-huang said Chen used his relationships with former TSMC colleagues to illegally access and collect the chip maker's trade secrets. According to the court, he photographed, copied and passed along materials to help Tokyo Electron improve its bids as a TSMC supplier.

Chang said Chen's motivation was mainly to improve his personal work performance. The judge also said he jeopardized the competitiveness and economic security of Taiwan and its chipmaking industry.

Tokyo Electron said it dismissed an employee involved in the case and that it takes the court's finding with the utmost seriousness, adding that it will strengthen its information management systems and other relevant measures. The company said its internal investigation had not confirmed evidence of relevant confidential information being leaked, and that the court and its own probe had not found any organizational involvement by Tokyo Electron.

TSMC said it maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests. The chipmaker said such violations are dealt with strictly and pursued to the full extent of the law. TSMC counts Nvidia and Apple among its key customers.