TSM Sues Employees Over Trade Secret Breach, Analysts Predict Positive Price Trajectory

Taiwan Semiconductor Manufacturing Co. has initiated legal action against employees accused of leaking trade secrets related to its 2-nanometer chip technology. Analysts predict a positive price trajectory with potential for significant upside, with 17 experts forecasting an average one-year price target of $264.38, representing a 10.62% potential upside from the current stock price of $239.00. The consensus among 20 brokerage firms rates TSM as "Outperform."

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].

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].

Analysts predict a positive price trajectory with potential for significant upside, with 17 experts forecasting an average one-year price target of $264.38, representing a 10.62% potential upside from the current stock price of $239.00. The consensus among 20 brokerage firms rates TSM as "Outperform" [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