Suspected leak of TSMC’s next‑gen 2 nm chip secrets prompts legal action

Taiwan Semiconductor Manufacturing Company (TSMC) reported having initiated legal and disciplinary action against employees who reportedly participated in leaking trade secrets from the company. The potential leakage of trade secrets was detected in a routine monitoring, which showed unauthorised activity, reports Reuters.

After the reports, Taiwanese authorities arrested two former employees and a third suspect on these allegations, which will be the first time the national security law will be applied to a trade secrets case. TSMC did not share more details about the information and the scope of the information leaked, arguing that the judicial review prevents the company from doing so.

The company reported that the leak was detected in the early stages. “Thanks to our comprehensive and robust monitoring mechanisms, we were able to identify the issue early,” said TSMC. According to Nikkei Asia, the employees were potentially involved in obtaining information on TSMC’s 2-nanometer (N2) chip technology; however, it is not clear who was the recipient of this information. 

This chip is still under development and, according to the manufacturer, could become the most advanced in terms of density and energy efficiency. The company has informed that mass production is scheduled for the second half of 2025 to get to commercial launch in early 2026.

The Taiwan High Prosecutors Office said that several suspects and witnesses were questioned between July 25  and July 28, and conducted several searches in the residences and workplaces of the suspects, reported The Financial Times.