Taiwanese prosecutors have formally indicted a former manager at Taiwan Semiconductor Manufacturing Co. (TSMC) on charges of industrial espionage, accusing the individual of stealing trade secrets for the benefit of China.
The indictment marks a significant escalation in the legal response to alleged intellectual property theft within the island's critical semiconductor industry.
The case follows a series of raids conducted earlier this week, during which authorities searched the offices and residences of six individuals suspected of smuggling high-end artificial intelligence chips to China.
The move signals a hardening stance by Taiwanese authorities against the illicit transfer of advanced technology, a key strategic asset in the ongoing US-China tech rivalry.
For investors, the development highlights the persistent geopolitical risks surrounding TSMC, the world’s largest contract chipmaker.
While the company recently raised its full-year revenue outlook driven by robust demand for AI chips, legal entanglements involving former employees could introduce operational distractions and reputational headwinds.