Taiwan Semiconductor Employees Arrested for Allegedly Stealing Trade Secrets.

Former Taiwan Semiconductor Manufacturing Company (TSMC) employees have been arrested for allegedly stealing trade secrets. The company has initiated legal action and detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks. The investigation is ongoing.

Title: TSMC Faces Trade Secret Leak Amid 2-Nanometer Chip Development

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, has recently faced a significant security breach. The company has reported the detection of unauthorized activities, leading to the discovery of potential trade secret leaks. This incident involves former employees who are suspected of attempting to obtain proprietary information on TSMC's 2-nanometer (2-nm) chip development and production [1].

TSMC confirmed that it has taken strict disciplinary actions against the involved personnel and has launched legal proceedings. The investigation is ongoing, and the case is currently under judicial review in Taiwan. The company has emphasized its commitment to safeguarding its core competitiveness and the interests of its employees [2].

The 2-nm process is a cutting-edge semiconductor manufacturing technology that TSMC, Samsung Electronics, Intel, and Japan's Rapidus are among the few companies pursuing. This technology is considered highly complex and capital-intensive, and its successful development could significantly impact the global electronics supply chain [3].

TSMC's latest quarterly results, reported on July 1, 2025, showed strong performance, with consolidated revenue rising 38.6% year-on-year to NT$933.79 billion ($30.07 billion). The company's net profit jumped 60.7% to NT$398.27 billion ($13.5 billion). Advanced process technologies, such as 7-nanometer and smaller, made up 74% of wafer revenue, with 3-nanometer and 5-nanometer nodes contributing 24% and 36% respectively [1].

Despite the ongoing investigation, TSMC's stock has gained nearly 22% this year, driven by strong demand for advanced, high-performance chips for artificial intelligence (AI) processes and systems. The company's leading-edge process technologies are expected to support its business growth [3].

References:
[1] https://www.business-standard.com/world-news/tsmc-chipmaker-2nm-chip-data-leak-layoff-taiwan-125080500434_1.html
[2] https://www.cnbc.com/2025/08/05/chipmaker-tsmc-says-it-has-discovered-potential-trade-secret-leaks.html
[3] https://menafn.com/1109885994/TSMC-Chip-Secrets-At-Risk-Apple-Nvidia-Supplier-Reportedly-Probes-Trade-Secret-Breach-As-Ex-Employees-Accused-Of-Data-Theft