Taiwan Semiconductor Manufacturing Co. TSM, the world’s largest contract chipmaker, has reportedly initiated legal proceedings against former employees suspected of attempting to steal critical 2-nanometer chip technology secrets.
TSMC Launches Legal Action Over Trade Secret Breach
The company detected unauthorized activities through routine monitoring systems and launched internal investigations, according to Reuters reports on Tuesday. TSMC serves major U.S. tech giants, including Apple Inc. AAPL, Nvidia Corp. NVDA, and Qualcomm Inc. QCOM.
Investigation Targets Advanced Chip Technology
The suspected breach involves TSMC’s most advanced 2nm chip technology, representing the industry’s cutting-edge in density and energy efficiency. Several former employees allegedly attempted to obtain proprietary information, though investigators haven’t determined whether data reached external parties.
TSMC recently secured a 300,000 H20 chipset contract from Nvidia, highlighting the strategic importance of protecting intellectual property. The case remains under judicial review, preventing the company from disclosing additional details.
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Market Impact Amid Trade Tensions
The espionage allegations emerge as semiconductor stocks face headwinds from new tariffs imposed by the Trump administration. Taiwan faces duties between 20-39% under recent trade measures targeting 69 countries.
Zero-Tolerance Policy Reinforced
TSMC emphasized its “zero-tolerance policy” for trade secret violations and vowed to pursue legal action to the full extent, according to the report. The company’s comprehensive monitoring mechanisms enabled early detection of the suspected breach.
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