The Secrets of TSMC's 2-Nanometer Technology Stolen with a Smartphone: Engineers Face Jail Time

The case of industrial espionage against TSMC by some of its former engineers is heating up, with a verdict expected on April 27 (source: UDN). As reported in previous months, three individuals have been accused of stealing sensitive information related to the most advanced manufacturing processes, including the 2-nanometer technology. Taiwanese authorities have initiated legal proceedings that could lead to significant prison sentences, up to 14 years for the main offenses, and, in case of accumulation, even up to 20 years.

According to details emerging during the investigations, between 2023 and the first half of 2024, some employees reportedly photographed confidential documents using simple smartphones, bypassing internal security systems. The information was then shared and used to improve production equipment intended for the most advanced nodes.

At the center of the case is Chen Li-ming, a former TSMC engineer who later moved to Tokyo Electron Taiwan. According to the charges, he coordinated illicit data collection activities involving other engineers still employed at TSMC, including Wu Bing-chun and Ko Yi-ping. The goal was to obtain critical details about 2nm etching processes, thereby allowing the new employer to improve its solutions and increase its chances of becoming a qualified supplier for TSMC itself. This highlights how competition in the semiconductor supply chain also hinges on the ability to access extremely confidential know-how.

A second parallel line of investigation concerns the theft of information related to 14nm technologies, with charges also including the destruction of evidence and the sharing of data via cloud platforms. The most significant aspect of the case is the application, for the first time in this context, of Taiwanese national security law. Authorities consider the theft of advanced technologies to be a strategic issue, with implications not only for industry but also for geopolitics.

In addition to the individuals involved, Tokyo Electron Taiwan is also subject to a separate proceeding for alleged failure to prevent illicit activities. The company faces a significant economic penalty, amounting to approximately 145 million Taiwanese dollars (around 4 million euros).

This case is part of a broader context in which the security of technologies related to semiconductors has become central. While public debate often focuses on tariffs and export restrictions on AI accelerators, incidents like this highlight how the protection of manufacturing know-how is equally crucial. Moreover, this is not an isolated case: a separate investigation is ongoing involving another former TSMC employee now at Intel, accused of unlawfully transferring sensitive information.