BREAKING: Six Arrested for Attempted Theft of Trade Secrets from TSMC on iPhone 18 Chip Process

Six people have been arrested by TSMC for attempting to steal trade secrets related to the company's 2-nanometer chip process, which is expected to be used for the A20 chips in the iPhone 18 lineup. The former employees were fired and TSMC is taking legal action against them. A potential motive for the theft is to sell the information to a Japanese company with ties to TSMC.

Taiwan Semiconductor Manufacturing Co. (TSMC) has taken significant steps to address a recent incident involving the alleged theft of trade secrets related to its 2-nanometer chip process. Six individuals, including current and former employees, have been arrested for attempting to steal proprietary information. This development comes at a critical juncture as TSMC's 2nm technology is set to power Apple's A20 chips for the upcoming iPhone 18 lineup.

The incident was uncovered through TSMC's routine monitoring, which detected "unauthorized activities" leading to the discovery of potential trade secret leaks. The company has taken strict disciplinary actions against the involved personnel and has initiated legal proceedings. The arrests were made by Taiwanese authorities, who are investigating the matter under the country's National Security Act, which protects critical technologies including advanced chip processes.

The 2nm process is considered the most advanced in the semiconductor industry and is expected to offer significant performance and energy efficiency gains. TSMC has been expanding its manufacturing capabilities in the U.S. and has a roadmap for even more advanced 1.4nm chip production. Apple, as one of TSMC's major clients, is expected to adopt the 2nm process for its next-generation A-series and M-series processors.

The potential motive for the theft remains unclear, but it is suspected that the information was intended to be sold to a Japanese company with ties to TSMC. The company's zero-tolerance policy towards any actions that compromise the protection of trade secrets underscores its commitment to safeguarding its intellectual property.

This incident highlights the increasing importance of semiconductors in the global tech landscape and the heightened security measures that companies like TSMC are implementing to protect their intellectual property. As the world's leading chipmaker, TSMC continues to face challenges in maintaining the security of its cutting-edge technologies.

References:
[1] https://www.cnbc.com/2025/08/05/chipmaker-tsmc-says-it-has-discovered-potential-trade-secret-leaks.html
[2] https://www.iclarified.com/98081/apple-supplier-tsmc-fires-employees-over-alleged-2nm-chip-secrets-theft-report
[3] https://www.macrumors.com/2025/08/05/alleged-theft-of-chip-tech-for-a20-chip/
[4] https://9to5mac.com/2025/08/05/tsmc-says-employees-tried-to-steal-trade-secrets-on-iphone-18-chip-process/
[5] https://www.pcmag.com/news/3-former-tsmc-employees-arrested-for-allegedly-stealing-trade-secrets