Taiwanese prosecutors charged Tokyo Electron for failing to prevent staff from allegedly stealing Taiwan Semiconductor Manufacturing Co. (TSMC) trade secrets, signaling stricter scrutiny of partnerships in an industry vital to national and economic security.
Prosecutors indicted the Japanese company on several counts of violating business secret and national security laws. They¡¯re asking a local court to fine the Japanese company 120 million New Taiwan dollars ($4 million) for not taking adequate measures to prevent the alleged theft, according to a statement on Tuesday. While prosecutors suggested the chip gear maker could have done more to prevent the incident, they¡¯re not accusing the Japanese firm of utilizing TSMC¡¯s proprietary data. Tokyo Electron¡¯s shares rose 4.5%, while TSMC¡¯s gained 1% Wednesday.
The case underscores how Taiwan in 2025 has been flexing the economic clout amassed from a growing dominance of chipmaking.
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