On August 5, 2025, Taiwan Semiconductor Manufacturing Company (TSMC) uncovered suspicious activity suggesting a possible leak of trade secrets related to its cutting-edge 2-nanometer process technology. The discovery came through the company’s comprehensive, routine monitoring systems, which flagged unauthorized attempts to access proprietary data and immediately triggered internal investigations and legal action.
TSMC has launched judicial proceedings and imposed disciplinary measures, including the termination of employment for the personnel implicated. In an emailed statement, the company highlighted its “zero-tolerance policy” on intellectual property violations and emphasized that its robust safeguards enabled swift containment of the incident, preventing further unauthorized dissemination of sensitive information.
Taiwan’s High Prosecutors Office has since arrested three individuals in connection with the case—two former TSMC employees and a third suspect—on allegations of stealing proprietary semiconductor technology. Prosecutors also conducted searches of the Taiwan offices of Japanese equipment supplier Tokyo Electron as part of the broader inquiry, which remains ongoing under Taiwan’s strengthened national security legislation.
TSMC’s 2 nm node represents the pinnacle of semiconductor density and energy efficiency, with mass production slated to begin later this year. The foundry, which produces over 90 % of the world’s most advanced chips and serves marquee clients such as Nvidia, Apple, and Qualcomm, recently secured a 300,000-unit H20 chipset order from Nvidia—underscoring the strategic importance of safeguarding its proprietary processes.
This is the first high-profile case enacted under Taiwan’s enhanced national security provisions for protecting “core technologies,” reflecting the intensifying global competition and risks of industrial espionage in semiconductor manufacturing. With U.S.-led export controls limiting China’s access to advanced lithography equipment, talent and trade-secret theft tactics have grown ever more aggressive among rival firms.
TSMC remains unwavering in its commitment to safeguarding the intellectual property that powers global innovation in AI, mobile, and high-performance computing. The company reassures its partners and stakeholders that it has taken all necessary measures to secure its 2 nm technology and will continue investing in state-of-the-art security protocols and employee training to prevent future breaches.
