The prosecution established that Chen and his co-conspirators obtained TSMC trade secrets specifically to secure additional equipment orders for Tokyo Electron. Tokyo Electron acknowledged the verdict and stated it is discussing enhanced employee protections with TSMC. The company reported no material earnings impact and noted that the stolen information did not leak beyond internal channels. All defendants have the right to appeal.
The indictments were filed in August 2025. The case reflects intensifying scrutiny of intellectual property theft in Taiwan's semiconductor sector, following similar investigations into a former TSMC executive who joined Intel. For in-house counsel at semiconductor firms and equipment suppliers, the verdict signals that Taiwan's courts will impose substantial criminal penalties for trade secret misappropriation involving national security technologies, and that companies face significant liability even when damage is contained. Firms operating in this space should review employee monitoring and information access protocols.