Taiwan is grappling with two separate cases involving alleged leaks of TSMC's 2nm technology, with investigations accelerating on November 19. While three former engineers could face prison terms of up to fourteen years, a retired senior executive suspected of taking 2nm-related information to Intel may ultimately face no criminal exposure.

Three Former Engineers Admit Guilt but Remain in Custody

According to local media reports, the Taiwan Intellectual Property and Commercial Court held its first detention extension hearing on November 19 for three former TSMC engineers — Chen Li-ming, Wu Bing-jun, and Ge Yi-ping. The trio has been detained for four months and has admitted guilt, arguing there is no further need for detention and requesting release on bail. Prosecutors disagreed, citing inconsistencies in their testimony and the severity of the offenses, urging continued detention. A ruling is expected later this week.

Investigators from Taiwan's High Prosecutors' Office have seized the three suspects' phones and are reconstructing communications as part of a broader probe into whether Japanese semiconductor equipment maker Tokyo Electron or its senior managers instructed or encouraged Chen to steal trade secrets. The investigation is being handled as an "other-case" inquiry, a classification used when probing potential third-party involvement.

Prosecutors allege that Chen, formerly an engineer in yield management at TSMC's Fab 12, faced financial pressure due to his child's illness. After joining Tokyo Electron, where early 2nm trial output had succeeded but mass-production testing repeatedly failed, Chen allegedly sought help from Wu and Ge, with whom he had a mentor relationship. Wu and Ge allegedly accessed TSMC's internal database remotely, captured twelve confidential 2nm process images, and sent them to Chen. Chen then incorporated the information into Tokyo Electron's internal documents in an attempt to secure a TSMC equipment order.

On August 27, prosecutors charged the three under Taiwan's Trade Secrets Act and National Security Act, seeking sentences of fourteen, nine, and seven years respectively. The IP court has restricted how defense lawyers may access the case files, citing national security and the sensitivity of the 2nm technology, and the trial is being conducted behind closed doors.

Retired TSMC Executive Under Investigation but May Face No Charges

In a separate case, former TSMC vice president Wei-Jen Lo is under investigation for allegedly taking information related to sub-2nm process technology before joining Intel. However, as of now, TSMC has not filed a complaint, and the High Prosecutors' Office confirmed that the matter is still in an evidence-collection phase under an "other-case" classification.

Taiwan's Minister of Economic Affairs, Ming-hsin Kung, said on November 19 that investigators have begun reviewing the case and the ministry will assist with clarifying how key technologies are controlled.

TSMC board member and National Development Council chief Paul Liu commented that Lo had been reassigned more than a year ago and no longer had access to the company's most sensitive R&D technologies. He emphasized that TSMC's internal systems are robust and that the incident would not shake trust within the organization or among customers.

Science and Technology Council Minister Wu Cheng-wen added that TSMC is still conducting its internal review and should be the party to publicly clarify the situation once the facts are established. He noted that if Lo only took personal notes without violating any law or causing damage, the matter may not constitute an offense. If his move to Intel violates employment contracts — such as non-compete requirements — TSMC may pursue civil procedures instead.

Industry insiders also point out that although TSMC typically requires departing senior executives to observe an eighteen-month non-compete clause with partial salary compensation, Lo reportedly did not sign such an agreement. Even if he had, his U.S. citizenship could complicate enforcement.

Intel CEO Dismisses Rumors of Technology Transfer

Intel CEO Lip-Bu Tan addressed the controversy during the SIA awards ceremony, stating that speculation about a 2nm process leak is unfounded and emphasizing that Intel respects the intellectual property of other companies.

Lo is expected to join Intel Foundry in an R&D-related role, with earlier reports suggesting his work will focus more on advanced packaging than on process technology. Intel's roadmap — including 18A, PowerVia, RibbonFET, and early adoption of High-NA EUV — differs significantly from TSMC's approach, reducing the likelihood of direct process-level knowledge transfer.

Industry analysts believe Intel's primary gain from Lo's hiring will be his understanding of supply chain dynamics and customer expectations, especially from U.S. clients seeking external foundry partners.