According to The Nikkei, Taiwan’s High Prosecutors Office on August 5 detained three former employees of Taiwan Semiconductor Manufacturing Company (TSMC) on suspicion of illegally obtaining classified information related to the research and manufacturing of 2-nanometer advanced semiconductors. In recent years, Taiwan has stepped up measures to counter economic espionage targeting cutting-edge technologies such as semiconductors, and the progress of this investigation is drawing significant attention.
In an interview with The Nikkei’s reporter Hidemitsu Ryu, DSET CEO Dr. Jeremy Chang Chih-Cheng noted that “the United States and Japan were earlier movers in establishing legal frameworks against economic espionage, while Taiwan caught up with its 2022 legal revision.” To prevent technology leaks, Taiwan amended the National Security Act in 2022 to introduce the crime of “economic espionage.” Previously, such cases were handled only under the Trade Secrets Act, but the amendment explicitly strengthened government oversight and enforcement against the theft of Taiwan’s core technologies.
The Nikkei reported that the world’s most advanced semiconductor technology is a cornerstone of Taiwan’s economic security. The core technology list compiled by the National Science and Technology Council (NSTC) includes semiconductor processes at or below the 14-nanometer node.
The High Prosecutors Office stated this is the first investigation since the 2022 amendment targeting the illegal acquisition of core technologies. Following TSMC’s criminal complaint, prosecutors launched large-scale searches in late July. The investigation will now focus on whether additional classified information has been leaked.
In June 2022, Taiwan’s Legislative Yuan passed amendments to the National Security Act adding provisions for the crime of economic espionage and the extraterritorial use of trade secrets involving the nation’s core critical technologies. The law stipulates that no person may, with the intent to use abroad (including China, Hong Kong, and Macau), engage in conduct infringing trade secrets related to core national technologies. First-instance jurisdiction lies with specialized tribunals of the High Court or the Intellectual Property Court, with investigations handled directly by the High Prosecutors Office.
