TSMC employees accused of stealing trade secrets for iPhone 18 chip process, prosecutors seek 14-year prison sentence

Six TSMC employees, fired for trying to steal trade secrets related to the 2nm chip process, are now being prosecuted. Prosecutors seek a 14-year prison sentence for one of the indicted individuals. The stolen information, likely related to the 2nm process, could have national security implications. The employees allegedly planned to sell the information to a Japanese company with ties to TSMC.

Taiwanese prosecutors have indicted three individuals for allegedly stealing trade secrets from Taiwan Semiconductor Manufacturing Company (TSMC), a leading global chipmaker. The indictment follows the discovery of unauthorized activities by TSMC employees, which could have significant national security implications. The defendants, including a former TSMC employee surnamed Chen, are accused of conspiring to use the information to help Tokyo Electron, a Japanese chipmaking tools supplier, in competing for TSMC supplier deals for the 2-nanometer (2nm) process [1][2].

The prosecutors are seeking a combined 14-year prison term for Chen and the other two defendants for violating Taiwan’s trade secrets and national security laws [3]. The case is notable as it is the first brought under Taiwan’s National Security Law involving the theft of core technologies [3]. TSMC's 2nm chip technology is considered the most advanced in the semiconductor industry in terms of both density and energy efficiency [3].

TSMC has stated that it recently detected unauthorized activities during routine monitoring, 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 [2]. The attempt was detected by spotting unusual access patterns on the part of one of the employees [2].

The stolen information is likely related to TSMC's 2nm chip process, which is expected to be used for Apple's A20 chips across next year's iPhone 18 lineup [2]. The potential motive for the theft is suggested to be the sale of the information to a Japanese company with ties to TSMC [2].

The case highlights the seriousness with which Taiwan takes the protection of advanced technology. The Taiwanese government is investigating the matter, and TSMC is seeking prosecution to the fullest extent of the law [2]. No details have been shared on the nature of the information obtained, but it is likely to be general information about the 2nm process rather than specific details related to Apple's A20 chip [2].

References:
[1] https://www.reuters.com/markets/emerging/taiwan-prosecutors-indict-three-people-stealing-tsmc-trade-secrets-help-its-2025-08-27/
[2] https://9to5mac.com/2025/08/27/tsmc-says-employees-tried-to-steal-trade-secrets-on-iphone-18-chip-process/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3UJ0GZ:0-taiwan-prosecutors-indict-three-people-of-stealing-tsmc-trade-secrets-to-help-its-supplier-tokyo-electron/