Taiwan Semiconductor Manufacturing Co. (TSMC) has initiated legal proceedings after discovering a potential leak of trade secrets, reportedly involving its cutting-edge 2-nanometer chip technology.
The world’s largest semiconductor manufacturer confirmed on Tuesday that it had detected “unauthorized activities” and has taken “strict” disciplinary action against the personnel involved. While TSMC did not specify the nature of the compromised data, a report from Nikkei Asia, citing sources familiar with the matter, indicated that several former employees are suspected of attempting to steal proprietary information on 2nm chip development and production.
In a statement, the company said it maintains a “zero-tolerance policy toward any actions that compromise the protection of trade secrets” and that such violations are “pursued to the fullest extent of the law.” TSMC credited its “comprehensive and robust monitoring mechanisms” for the early detection and swift internal investigation. The company declined to provide further details, as the case is now under judicial review.
The incident highlights the intense security challenges facing the industry leader, whose technology is critical for clients like Apple and Nvidia and underpins the global boom in artificial intelligence. Amid rising geopolitical tensions, the technological advantages of key firms in the chip supply chain are of major strategic importance.
This is not the first time TSMC has faced such threats. In 2018, a former employee was indicted for attempting to transfer trade secrets about the company’s 28-nanometer process to a firm in mainland China. The broader semiconductor industry also remains a high-value target, with key equipment supplier ASML reporting in 2023 that a former employee in China had misappropriated proprietary data.
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