Taiwan’s leading chipmaker takes legal action after internal breach

Taipei, August 5, 2025 — Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor manufacturer, has revealed it is investigating a possible leak of trade secrets after detecting unauthorized internal activities.

The company confirmed that it has already taken strict disciplinary action against the employees involved and initiated legal proceedings.

“TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the firm said in a public statement.

Internal Monitoring Flags Suspicious Activity

According to TSMC, the breach was discovered through its in-house monitoring mechanisms, which helped identify unusual behavior. A swift internal investigation followed, leading to the conclusion that there may have been an attempt to leak sensitive corporate information.

Due to the sensitive nature of the situation and ongoing judicial review, the company has said it cannot disclose additional details at this time.

Former Employees Suspected in 2nm Data Leak

On the same day, Nikkei Asia reported—citing sources familiar with the matter—that several former TSMC employees are suspected of trying to access proprietary information related to the company’s 2-nanometer chip development. The alleged activity reportedly took place while these individuals were still employed at the company.

The 2nm chip represents one of the most advanced nodes in semiconductor manufacturing and is seen as a major step forward in chip performance and energy efficiency. Protecting this technology is critical, as it gives TSMC a competitive edge over global rivals.

When asked about the Nikkei report, TSMC declined to provide further comment.

TSMC Holds Vast Intellectual Property

TSMC is well-known for its extensive intellectual property portfolio. The company has previously disclosed that it holds over 200,000 trade secrets within its internal system.

As a major chip supplier to global tech giants such as Apple and Nvidia, any breach of its proprietary technology could have a ripple effect across the entire tech ecosystem.

Similar Incidents in the Past

This incident is not the first time TSMC has had to deal with insider threats. In 2018, a Taiwanese court indicted a former TSMC employee for allegedly copying secrets related to the 28-nanometer fabrication process and attempting to transfer them to a Chinese competitor.

In 2023, Dutch semiconductor equipment maker ASML also faced a similar challenge. A former employee in China was found to have misappropriated data related to its advanced chip manufacturing equipment.

Industry Impact and Growing Cybersecurity Concerns

With the increasing demand for advanced semiconductors and growing geopolitical focus on chip sovereignty, safeguarding trade secrets has become a top priority for leading chipmakers.

TSMC’s proactive approach—through constant monitoring and strict policy enforcement—highlights the challenges tech companies face in preventing insider threats.

“We remain committed to safeguarding our core competitiveness and the shared interests of all our employees,” the company added.

Published by DF Media – Delivering Clarity, Speed, and Depth in Every Tech Update.