TSMC Unveils Secret Management System to Protect Trade Secrets

TSMC is developing a system to manage trade secrets, according to its lawyer. The Taiwan-based company is primarily engaged in integrated circuit manufacturing services, including process technology and design ecosystem support. It has completed the transfer and mass production of 5nm technology and is researching 3nm and 2nm process technologies. The company's product range covers the entire electronic application industry, including personal computers, information application products, and communication system products.

TSMC, the Taiwan-based integrated circuit manufacturer, has been developing a system to manage trade secrets, according to its lawyer. This system is part of the company's broader strategy to protect its intellectual property, particularly in the context of its advanced process technologies. TSMC is primarily engaged in integrated circuit manufacturing services, including process technology and design ecosystem support, and has completed the transfer and mass production of 5nm technology, while researching 3nm and 2nm process technologies [1].

In recent legal developments, Taiwanese prosecutors have indicted three individuals for stealing trade secrets from TSMC. The stolen information involved the company's most advanced 2-nanometer chip process. Prosecutors allege that the defendants used the information to help Japan’s Tokyo Electron compete for TSMC supplier deals. Tokyo Electron has confirmed that a former employee of its Taiwan subsidiary, Tokyo Electron Taiwan Ltd, has been indicted by Taiwanese judicial authorities [2].

TSMC's response to these developments has been to express regret over the matter and to emphasize its commitment to compliance with laws and ethical standards. The company has stated that its internal investigation has not found any organized instructions directing the former employee to obtain improper information. TSMC has pledged to continue full cooperation with the authorities in addressing this issue [1].

The recent legal developments underscore the importance of trade secret management in the semiconductor industry. TSMC's ability to navigate geopolitical headwinds and maintain its technological edge is critical to its long-term growth. The company's strategic alignment with U.S. policies, including the phase-out of Chinese equipment from its 2nm production lines by 2025, reflects its commitment to compliance with export restrictions and securing access to U.S. subsidies [2].

Investors should monitor TSMC's ability to manage these challenges while maintaining its technological leadership. Despite near-term margin pressures, TSMC's 30% revenue growth guidance for 2025 and expanding market share in AI chips justify a bullish outlook. The company's resilience and vision offer a rare blend of stability and high-growth potential, making it a compelling long-term investment [2].

References:
[1] https://www.taipeitimes.com/News/taiwan/archives/2025/08/29/2003842885
[2] https://www.ainvest.com/news/tsmc-strategic-position-china-tech-rivalry-ai-chip-export-curbs-2508/
[3] https://www.ntd.com/3-individuals-indicted-for-stealing-tsmc-secrets_1087711.html