Taiwan Semiconductor Manufacturing Co. reported on 5 August that it has found possible trade secret leaks as a result of “unauthorised activities”. The largest semiconductor maker in the world informed CNBC that it has initiated legal action and taken “strict” disciplinary action against the concerned staff.
Legal Action Taken as TSMC Enforces Zero-Tolerance Policy
According to the corporation, TSMC has a zero-tolerance policy for any behaviour that jeopardises trade secret protection or jeopardises the interests of the business.
It went on to say that such infractions are strictly dealt with and prosecuted to the maximum extent of the law. The company will continue to be dedicated to protecting both its fundamental competitiveness and the interests of all of its employees.
Semiconductor Espionage on the Rise Amid AI Boom
Since semiconductors are now the mainstay of the explosion in artificial intelligence models and applications, their strategic significance has increased recently. The competitive technology advantages of large semiconductor supply chain companies like TSMC and other leaders across the board have come into sharper focus due to rising geopolitical concerns.
Major computer companies like Apple and Nvidia are customers of Taiwan-based TSMC, which leads the market for producing the most cutting-edge processors in the world. The company stated that TSMC is unable to provide more details because the case is currently undergoing judicial review. According to the company, TSMC’s “comprehensive and robust monitoring mechanisms” allowed it to identify the problem early and conduct prompt internal investigations.
2nm Chip Development at the Heart of the Leak?
Numerous former TSMC employees are suspected of trying to get crucial private information on the development and production of 2-nanometre chips while they were still employed by the business, according to a report published by Nikkei Asia on 5 August, which cited numerous people with knowledge of the situation. One of the most advanced manufacturing techniques in the semiconductor industry at the moment is the creation of the 2-nanometre chip.
History of Trade Secret Breaches in the Chip Industry
Being the top chipmaker in the world, TSMC possesses a wealth of intellectual property. The business has claimed in the past that it had over 200,000 trade secrets stored in its internal system.
TSMC has been the victim of possible theft on previous occasions. A former employee was charged by a Taiwanese court in 2018 with copying trade secrets pertaining to the 28-nanometre fabrication process with the intention of transferring them to a mainland Chinese semiconductor company.
ASML, a manufacturer of the equipment needed to produce the most sophisticated chips, reported in 2023 that it had found evidence of data theft involving their unique information by a former employee in China.
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