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Taiwan Prosecutors Seek Severe Sentences for TSMC Chip Data Theft

TSMC's strict zero-tolerance policy for leaks is being put to the test. Prosecutors demand harsh sentences for engineers accused of stealing advanced chip data.

In this image there are people. In the center there is a woman working with the machine and there...
In this image there are people. In the center there is a woman working with the machine and there is a caution paper attached to the machine. Image also consists of wires, papers and also some objects placed in a green container.

Taiwan Prosecutors Seek Severe Sentences for TSMC Chip Data Theft

Taiwanese prosecutors have demanded severe sentences for three engineers accused of stealing confidential data from TSMC, the world's largest contract chipmaker. The trio, led by former TSMC engineer Chen, now at Tokyo Electron, face up to 14 years in prison for the alleged theft of 2-nanometer chip process data.

Prosecutors have charged Chen, Wu, and Ge with photographing sensitive documents containing key process parameters. Chen's actions are considered particularly grave, violating both the National Security Act and the Trade Secrets Act. The defendant, Xu Xinchuang, previously worked at TSMC before moving to Tokyo Electron. TSMC maintains a strict zero-tolerance policy for leaks, warning of significant security risks in advanced semiconductor manufacturing.

The prosecutors have sought a 14-year sentence for Chen, deeming his role as the mastermind behind the data theft as especially serious. Wu and Ge face sentences of 9 and 7 years respectively, reflecting the gravity of their involvement in the alleged crime.

The Taiwanese judicial system is taking a stern stance against the accused engineers, with prosecutors pushing for substantial prison terms. The case underscores the critical importance of data security in the semiconductor industry, with TSMC's strict policies reflecting the high stakes involved in protecting intellectual property.

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