Japanese semiconductor equipment giant Tokyo Electron Limited (TEL) has executed a sweeping leadership change at its Taiwan subsidiary. The company announced the complete replacement of its Chairman, President, and Vice President in Taiwan, a move widely seen as directly linked to a major industrial espionage case involving TSMC's 2nm process technology.
The subsidiary's new Chairman will be Tatsuya Nagakubo, its new President will be Seiji Nakama, and a new Senior Executive Vice President role will be filled by Yu-Cheng Ko. The incumbents are being reassigned to advisory and divisional roles, with all changes effective February 1, 2025.
The management purge follows the fallout from a high-profile lawsuit. TEL is embroiled in a case where its former employees in Taiwan, in collusion with TSMC staff, are accused of stealing critical 2nm process parameters by photographing thousands of confidential documents. TEL has been sued by a Taiwanese court and faces a potential fine of approximately NT$1.2 billion.
In response to the scandal, TEL's President, Toshiki Kawai, personally traveled to Taiwan to apologize to TSMC's CEO, C.C. Wei. The current leadership shake-up is interpreted as a decisive step for the subsidiary's top executives to take responsibility, aiming to rebuild shattered trust with its most critical client, TSMC, and secure its role in future advanced node development.
While TEL officially stated the changes are part of a mid-to-long-term management strategy to strengthen operations and client service in Taiwan, industry observers view it as a necessary corrective action. The move is critical as TSMC ramps its 3nm production and plans for even more advanced nodes like 1nm, where TEL hopes to remain a key equipment supplier.
ICgoodFind's Insight
TEL's drastic leadership reshuffle underscores the severe consequences of breaching trust in the tightly-knit, high-stakes semiconductor ecosystem. It serves as a stark reminder that beyond technology, integrity and rigorous compliance are non-negotiable currencies for maintaining partnerships in the race for advanced manufacturing.
