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TSMC reveals possible theft of trade secrets, three individuals detained in Taiwan

TSMC reveals possible theft of trade secrets, three individuals detained in Taiwan

The largest semiconductor manufacturer in Taiwan, known for being the biggest chip maker globally, announced on Tuesday that it had uncovered some “fraudulent activities” involving employees likely engaged in stealing trade secrets associated with advanced computer chips.

TSMC, which produces chips for big names like Apple and Nvidia, reportedly terminated several employees and alerted Taiwanese authorities after detecting breaches in what they referred to as “regular surveillance.”

According to Taiwan’s High Prosecutor’s Office, three individuals have been arrested in connection to this alleged theft, with searches conducted at their homes. The investigation kicked off after it was noted that employees accessed secure company files.

“TSMC has a strict zero-tolerance policy against actions that threaten the protection of our trade secrets or jeopardize the company’s interests,” a spokesperson stated. They emphasized that violations will be dealt with severely and pursued to the fullest extent of the law. The company reiterated its commitment to safeguarding its core competitiveness and the shared interests of its employees.

Nikkei Asia earlier reported the firing of multiple workers suspected of stealing information related to their cutting-edge 2-nanometer chips, which are set to enter mass production later this year.

TSMC has not disclosed additional details as the case is still under legal review.

Both US and Taiwanese officials have shown increased awareness regarding the theft of trade secrets, especially amid rising tensions with China.

TSMC’s operations are particularly crucial for its prestigious clients, and the company has previously indicated that over 200,000 trade secrets are stored in its systems.

With the demand for computer chips soaring, especially for powering artificial intelligence models, Nvidia has become a powerhouse, achieving a market valuation around $4.4 trillion.

The Trump administration has fostered close ties with TSMC since taking office, and in March, TSMC announced a $100 billion commitment aimed at boosting production within the US over the next four years.

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