TSMC Fires Employees Over Suspected Trade Secret Breach in 2nm Chip Development

TSMC Chairman and CEO C.C. Wei has previously emphasized that duplicating the company’s technologies is extremely difficult due to the complex know-how and accumulated expertise required in chip design and production.

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TSMC's wafer fabrication plant in Nanjing, in east China's Jiangsu province [ Photo Courtesy: AP ]

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has dismissed several employees for allegedly violating company rules and attempting to access sensitive information related to its next-generation 2-nanometer chip technology, Nikkei Asia reported.

According to Nikkei Asia, multiple former TSMC employees are under investigation for suspected attempts to obtain critical proprietary data during their tenure at the company. The unauthorized activity, which was identified during routine internal monitoring, raised concerns of potential trade secret leaks.

“TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the company told Nikkei Asia. “Such violations are dealt with strictly and pursued to the fullest extent of the law.”

In a statement released Monday, TSMC confirmed it had taken “strict disciplinary actions against the personnel involved and has initiated legal proceedings.” The chipmaker also noted that the case is currently under judicial review, and further details cannot be disclosed at this time.

While the full extent of the information breach remains unclear, the company said it is continuing investigations to determine the scope of the leak, the intentions behind the actions, and whether additional individuals or third parties were involved.

The potential leak involves TSMC’s cutting-edge 2nm technology, which is set to enter mass production later this year. As the most advanced chip manufacturing process in the world, the 2nm node represents a significant strategic asset for Taiwan and the global semiconductor industry. Only a handful of players—including TSMC, Samsung, Intel, and Japan’s Rapidus—are currently developing this level of technology.

Due to the sensitive nature of the information, the case could fall under Taiwan’s National Security Act, enacted in 2022 to prevent corporate espionage and protect national core critical technologies, particularly in the semiconductor sector. Under the law, unauthorized use or disclosure of trade secrets related to key technologies—defined as more advanced than the 14nm node—is considered a national security violation.

TSMC Chairman and CEO C.C. Wei has previously emphasized that duplicating the company’s technologies is extremely difficult due to the complex know-how and accumulated expertise required in chip design and production.

The company reaffirmed its commitment to safeguarding its intellectual property and maintaining internal security. “We will continue to strengthen our internal management and monitoring systems and will work closely with relevant regulatory authorities as necessary to protect our competitive advantage and operational stability,” TSMC told Nikkei Asia.

As of publication, Taiwan’s High Prosecutors Office had not released further information regarding the case.

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