Nikkei reported that Taiwan’s High Prosecutors Office on August 5 detained three former employees suspected of illegally obtaining confidential information related to the development and manufacturing of 2-nanometer advanced semiconductors. The case has drawn significant public attention as Taiwan continues to strengthen measures against economic espionage targeting advanced technologies such as semiconductors.
In an interview with Nikkei, DSET CEO Dr. Jeremy Chih-Cheng Chang noted that, in terms of legal frameworks for countering economic espionage, “The United States and Japan started earlier, while Taiwan caught up following its 2022 legal amendments.” Taiwan revised its National Security Act in 2022 to introduce the crime of economic espionage. Previously, such cases could only be prosecuted under the Trade Secrets Act. The amendments explicitly enhanced government capabilities to monitor and investigate the theft of Taiwan’s national core technologies.
Nikkei further reported that Tokyo Electron Ltd. announced on August 7 that it had confirmed the involvement of a former employee of its Taiwan subsidiary in the alleged illegal acquisition of advanced process secrets under investigation by Taiwanese authorities. Tokyo Electron stated that the employee had been dismissed as a disciplinary measure and emphasized its full cooperation with the investigation. The company added that, based on current findings, “no confidential information has been found to have been leaked externally.”
Dr. Chang also stressed the importance of robust information management for companies operating in Taiwan: “National core technologies designated under the National Security Act are particularly sensitive,” he said. “Firms must work closely with clients to ensure the highest standards of compliance.” According to the High Prosecutors Office, this is the first investigation since the 2022 legal amendments targeting the illegal acquisition of national core technologies. Future inquiries will focus on whether additional classified information has been leaked.
Taiwan’s National Security Act defines national core technologies to include semiconductor manufacturing processes below 14 nanometers. The High Prosecutors Office confirmed that this case marks the first investigation since the law was amended. On the same day, local media reported that the Hsinchu District Prosecutors Office is investigating Chinese companies for illegally hiring high-tech talent, underscoring Taiwan’s efforts to block potential channels of technology leakage.
Nikkei noted that the motives, objectives, and full scope of the leak remain unclear, against the backdrop of intensifying global competition in advanced semiconductors. Taiwan is expected to begin mass production of the world’s most advanced 2-nanometer chips in the second half of 2025. In Japan, Rapidus Corporation—pursuing domestic production of advanced semiconductors with U.S. IBM’s technical support—aims to begin mass production of 2-nanometer chips in 2027.
Tokyo Electron is the world’s fourth-largest semiconductor equipment supplier and Japan’s largest. Since entering the Taiwan market in the 1990s, the company has established multiple local offices, created significant local employment, and become a model of localized operations. As Taiwan has emerged as a global semiconductor investment hub, many Japanese companies have followed suit.
In June 2022, Taiwan’s Legislative Yuan passed amendments to the National Security Act introducing the crimes of economic espionage and extraterritorial use of trade secrets involving national core technologies. The law prohibits the use of such trade secrets in foreign countries, mainland China, Hong Kong, or Macau with the intent to infringe on national core technologies. First-instance trials fall under the jurisdiction of specialized divisions within the High Court or the Intellectual Property Court, while investigations are handled by the High Prosecutors Office.