Taiwan Targets Tokyo Electron Failures in TSMC Secrets Case

Taiwanese prosecutors charged Tokyo Electron Ltd. for failing to prevent staff from allegedly stealing Taiwan Semiconductor Manufacturing Co. trade secrets, signaling stricter scrutiny of partnerships in an industry vital to national and economic security.

Prosecutors indicted the longtime TSMC supplier’s Taiwan unit on several counts of violating business secret and national security laws. They’re asking a local court to fine the Japanese company NT$120 million ($4 million) for not taking adequate measures to prevent the alleged theft, according to a statement. While prosecutors suggested the chip gear maker could have done more to prevent the incident, they’re not accusing the Japanese firm of organizational involvement or of utilizing TSMC’s proprietary data.