Taiwanese prosecutors have filed charges against a former TSMC manager in a landmark case under the National Security Act, alleging he sought to transfer proprietary semiconductor manufacturing information to China. The accused reportedly collaborated with a Hong Kong associate to copy confidential technical documents, intending to establish a materials analysis venture in China and recruit additional Taiwanese engineers for the project.

The alleged transfer was unsuccessful and authorities recovered all stolen documents, minimizing damage to Taiwan's competitive position. The defendant remains in custody after several months of detention, with sentencing that could reach seven years if convicted. The prosecution reflects ongoing tension between Taiwan and China over industrial espionage targeting the island's critical semiconductor sector.