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Taiwan Arrests Three for TSMC Trade Secret Theft
ByAinvest
Tuesday, Aug 5, 2025 5:32 am ET1min read
Three individuals have been arrested in Taiwan for allegedly stealing trade secrets from Taiwan Semiconductor Manufacturing Company (TSMC). The company recently detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks. TSMC has initiated legal action to protect its intellectual property.
Taiwan Semiconductor Manufacturing Company (TSMC) has initiated legal action against three individuals arrested in Taiwan for allegedly stealing trade secrets related to the company's 2nm chip technology. The arrests come after TSMC detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks.TSMC, the world's largest contract chipmaker, serves major U.S. tech giants including Apple Inc., Nvidia Corp., and Qualcomm Inc. The suspected breach involves TSMC's most advanced 2nm chip technology, which represents the industry's cutting-edge in density and energy efficiency. Several former employees allegedly attempted to obtain proprietary information, though investigators have not yet determined whether any data reached external parties [4].
The company has emphasized its "zero-tolerance policy" for trade secret violations and vowed to pursue legal action to the fullest extent. TSMC's comprehensive monitoring mechanisms enabled early detection of the suspected breach. The case remains under judicial review, preventing the company from disclosing additional details.
The espionage allegations emerge as semiconductor stocks face headwinds from new tariffs imposed by the Trump administration. Taiwan faces duties between 20-39% under recent trade measures targeting 69 countries [4].
References:
[1] https://wccftech.com/tsmc-has-fired-employees-over-leaking-2nm-trade-secrets/
[2] https://www.investing.com/news/stock-market-news/taiwan-semiconductor-detects-unauthorized-activities-potential-trade-secret-leaks-93CH-4169416
[3] https://www.investing.com/news/stock-market-news/tsmc-cracks-down-on-potential-trade-secret-breach-initiates-legal-action-4169224
[4] https://www.benzinga.com/markets/tech/25/08/46850385/apple-nvidia-supplier-tsmc-flags-potential-espionage-in-2nm-tech-leak-takes-legal-action-against-former-employees
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