(Updates to add that TSMC declined to comment on' email seeking comment)
A former deputy manager at Taiwan Semiconductor Manufacturing Co. (TPE:2330) has been indicted for allegedly stealing trade secrets for intended use in China, Taiwan's Ministry of Justice said in a release on Monday.
The defendant, identified as Mr. Chen, was charged under Taiwan's National Security Act and Trade Secrets Act, with prosecutors seeking a seven-year prison sentence.
The prosecutors alleged that Mr. Chen conspired between May 2023 and February 2024 with a Hong Kong resident referred to as Mr. Ding, to set up a semiconductor materials analysis company in China under a plan called the "Blue Ocean Project."
The venture aimed to attract Chinese investment and recruit technical experts by using 21 copied TSMC files.
Mr. Ding was not prosecuted due to his death during the investigation.
TSMC declined to comment in an email responding to' query.