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Technology - August 5, 2025

TSMC Detects Potential Trade Secret Leak of 2-Nanometer Chip Development Data – World’s Largest Semiconductor Manufacturer Takes Strict Action

Taiwan Semiconductor Manufacturing Company (TSMC) announced on Tuesday that it had identified “unauthorized activities” potentially involving trade secret leaks. The company, the world’s largest semiconductor manufacturer, has taken immediate disciplinary action against the involved personnel and initiated legal proceedings.

In a statement, TSMC affirmed its strict policy against actions that jeopardize the protection of trade secrets or harm the company’s interests. The firm pledged to pursue such violations to the fullest extent of the law while maintaining its commitment to safeguarding its core competitiveness and the shared interests of all employees.

The strategic importance of semiconductors has grown significantly in recent years, given their role as a key foundation for artificial intelligence models and applications. The increasing geopolitical tensions have highlighted the competitive technological advantages of major chip supply chain players like TSMC and other industry leaders.

Headquartered in Taiwan, TSMC leads the global market for advanced chip manufacturing, with major tech companies such as Apple and Nvidia among its clients. The company’s current judicial review prevents it from disclosing further details about the case.

TSMC attributed the early detection of the issue to its “comprehensive and robust monitoring mechanisms.” It reported conducting swift internal investigations following the discovery.

According to Nikkei Asia, citing multiple sources familiar with the matter, several former TSMC employees are suspected of attempting to obtain critical proprietary information related to 2-nanometer chip development and production while still employed at the company. The production of the 2-nanometer chip represents one of the leading-edge manufacturing processes in the semiconductor industry.

TSMC declined to comment on the Nikkei report when approached by CNBC, citing ongoing judicial review proceedings.

With over 200,000 trade secrets recorded within its internal system, TSMC boasts a substantial intellectual property portfolio. Previously, in 2018, a Taiwanese court indicted a former employee for copying trade secrets related to the 28-nanometer fabrication process with the intent to transfer them to a semiconductor company in mainland China.

In 2023, ASML, a company that manufactures machines essential for creating the most advanced chips, disclosed that a former employee in China had misappropriated data related to its proprietary technology.