Taiwan launches investigation into possible breach of sensitive semiconductor know-how

Taiwan’s tech industry stands unmatched in the global semiconductor race, largely due to TSMC, the world’s top producer of cutting-edge chips.

However, the island is currently facing a turbulent moment as authorities have launched an investigation into a possible breach of sensitive semiconductor know-how under national security rules.

Notably, the probe isn’t aimed at China. Instead, Taiwan is scrutinising Tokyo Electron and Intel, partners it has long considered trusted allies. 

Prosecutors last week charged the local unit of Tokyo Electron for allegedly failing to prevent technology leaks tied to TSMC, raising deeper concerns about safeguarding the island’s most valuable advantage.

Moreover, days earlier, investigators raided two properties linked to Lo Wei-jen, a former TSMC executive who resigned in July and later joined Intel. 

Officials fear he may have shared “national core critical technology” with his new employer. 

TSMC has already sued Lo for violating a non-compete agreement, warning that he could transfer confidential information to Intel.

Industry leaders in Taiwan have noted that the renewed focus on semiconductor security is overdue, especially as TSMC’s dominance keeps the island at the centre of global supply chains. 

Yet the shock comes from who is under scrutiny, highlighting how far Taiwan is now prepared to go to protect its chip leadership.