Tokyo Electron, Japan’s leading semiconductor equipment manufacturer, has dismissed an employee over suspected involvement in the theft of trade secrets from Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. The case has triggered a high-profile investigation in Taiwan under its recently revised National Security Act.
The news, first reported by Nikkei Asia, revealed that TSMC had fired several employees after discovering unauthorized attempts to access sensitive information related to its next-generation 2-nanometer chip technology. The chips are expected to enter mass production later this year and represent the cutting edge of global semiconductor innovation.
In a statement issued Thursday, Tokyo Electron confirmed that the former employee, based at its subsidiary Tokyo Electron Taiwan, had been dismissed following an internal investigation. “Based on our internal investigation to date, no leakage of confidential information has been identified,” the company said. “We place the highest priority on compliance and ethical standards and do not tolerate any actions that violate these principles.”
The employee in question had previously worked at TSMC and is suspected of collaborating with former TSMC staff to access proprietary chip development and production data. According to Nikkei Asia, Taiwanese prosecutors conducted a search of Tokyo Electron’s Taiwan office last week and are currently working to determine the scope and motive of the alleged breach.
Taiwan’s High Prosecutors Office confirmed that three individuals have been detained between July 25 and July 28 as part of the investigation, marking the first major case involving semiconductor technology prosecuted under the 2022 revision of Taiwan’s National Security Act. The law now classifies advanced semiconductor processes, equipment, and materials as “national core technologies” and extends strict penalties for unauthorized access or use.
Offenders found guilty of violating the act face prison sentences of up to 12 years.
Tokyo Electron, a key supplier to TSMC, reiterated that it is “fully cooperating” with Taiwanese authorities in the ongoing investigation.

