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Tokyo Electron Employee Arrested in TSMC Trade Secret Theft Case
8 Aug
Summary
- Taiwanese investigation into possible theft of chip tech at TSMC
- Former Tokyo Electron employee arrested for alleged trade secret theft
- Tokyo Electron cooperating with ongoing investigation
As of August 8th, 2025, a Taiwanese investigation into the possible theft of chip technology at Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has put a lesser-known Japanese tech company under unusual scrutiny.
Among the six people arrested by Taiwanese prosecutors for allegedly stealing trade secrets from TSMC was a former employee at Tokyo Electron Ltd., one of the world's biggest suppliers of chipmaking tools. The Japanese company is now struggling to address the potential fallout with one of its most important customers, TSMC, as well as with governments in Tokyo and Taipei.
Tokyo Electron has stated that it fired the employee at its Taipei unit in connection with the case and is cooperating with the ongoing investigation. The company's shares have recouped some of the week's losses, but remain down more than 4% since the TSMC news emerged.
The arrest of the Tokyo Electron employee raises questions about why the individual would be involved in such an endeavor, whether the company itself had any motivation to steal TSMC trade secrets, and whether the case ties into Japan's own ambitions to build a domestic chip industry.
