Industrial espionage: the silent war over tech secrets
The threat of industrial espionage is growing. The incident at Philips is not an isolated case.
Published on August 27, 2026
Team IO+ selects and features the most important news stories on innovation and technology, carefully curated by our editors.
In 2017, a former Philips engineer copied blueprints for CT scanners and passed them on to a Chinese competitor. Using that stolen data, Guoli is still manufacturing X-ray tubes in China, even though Philips’ factory in the U.S. has already closed. This is no exception. From semiconductors to nuclear technology: secrets are being stolen everywhere.
When Philips announced it was closing the factory, the Chinese competitor Guoli approached him. The man not only passed on the stolen data but also convinced colleagues to switch sides. With the stolen data, Guoli was able to set up its own production line in the same region as the closed Philips factory. The stolen X-ray tubes are still being sold in China. U.S. prosecutors called it a “serious economic crime” that threatens jobs and technological leadership. A jury in Chicago found the engineer guilty in August 2026. Two other defendants have already pleaded guilty; their sentencing is scheduled for late 2026. Guoli’s Chinese executives have so far evaded U.S. justice🔗︎.
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Industrial espionage at TSMC
Industrial espionage plays a major role in the semiconductor industry. In Taiwan, former TSMC engineer Chen Li-ming was sentenced in April 2026 to ten years in prison for stealing trade secrets related to TSMC’s advanced 2-nanometer technology and passing them on to his new employer, chip equipment manufacturer Tokyo Electron. Two other former TSMC employees were also sentenced to prison terms. The case was a first: it marked the first time the Taiwanese National Security Act was applied to the theft of so-called “national core key technologies” in the semiconductor industry. Tokyo Electron Taiwan received a suspended prison sentence and was ordered to pay a total of 150 million New Taiwan dollars (approximately $4.8 million). In late July 2026, the Taiwanese Supreme Court upheld the sentences of Chen Li-ming and another convicted individual.
Industrial espionage at CGNPC
In 2017, Taiwanese-American engineer Allen Ho was sentenced to two years in prison for passing nuclear technology to China’s state-owned enterprise CGNPC. Through his company, Energy Technology International, he gathered information on nuclear materials from U.S. developers—including the Tennessee Valley Authority—between 1997 and 2016.
European vulnerability and economic impact
Europe is not immune. A Bitkom survey of more than 1,000 German companies reveals that 96% were victims of data theft, espionage, or sabotage in the past year. Two-thirds confirmed successful attacks, 37% of which were attributed to foreign intelligence services—an increase from 28% the previous year. Russia (49%) and China (52%) are the most frequently cited perpetrators. The economic damage is estimated at 211 to 270.8 billion euros, although this figure is likely an underestimate due to underreporting. Cyberattacks account for 76% of the total damage, up from 59% two years ago.
Stolen information from ASML
A concrete European example is ASML. In July 2025, a Dutch court sentenced a former ASML and NXP employee to three years in prison for stealing technical information and sharing it with a contact in Russia. The information included details on chip production and technology with potential military applications. According to the Public Prosecutor’s Office, the man was also in contact with the Russian intelligence service, the FSB.