Taiwan Authorities Probe TSMC Employees Over Alleged Theft of Semiconductor Secrets

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading producer of advanced computer chips, has alerted Taiwanese prosecutors regarding suspicions that some current and former staff members may have been involved in the unauthorized acquisition of the company’s trade secrets.

A company spokesperson, Nina Kao, stated, “During routine monitoring, TSMC detected irregular activities that led to the identification of possible leaks involving trade secrets.”

Following these findings, TSMC has taken disciplinary measures against those implicated. The matter is now under investigation by Taiwan's intellectual property division within the Office of the High Prosecutor.

Prosecutor Nieh Chung confirmed that three individuals have been detained in connection with the case, while three additional people were questioned and subsequently released.

This alleged breach of proprietary information occurs amid heightened tensions between Taiwan and the United States, as Washington evaluates imposing tariffs on semiconductor imports—a key export from Taiwan—following recent tariff announcements on other Taiwanese goods.

TSMC supplies chips to major technology companies including Nvidia and Apple.

Both Taiwanese and U.S. governments consider semiconductor technology access a matter of national security.

In a notable incident last year, TSMC-produced chips were discovered in devices from Huawei, a Chinese telecom firm then subject to U.S. trade restrictions and now also restricted by Taiwan.

Only a few companies worldwide develop chips as sophisticated as those produced by TSMC, which are the result of decades of investment. These companies share many suppliers and manufacturing partners.

Authorities stated that the employees are suspected of unlawfully obtaining trade secrets related to TSMC’s core technologies, potentially violating Taiwan’s national security laws.

The investigation focuses on a facility in Hsinchu, where TSMC’s headquarters and its most advanced chip production operations are located, according to confidential sources familiar with the inquiry.

Ms. Kao emphasized, “TSMC enforces a strict zero-tolerance policy regarding any conduct that threatens the protection of its trade secrets or harms company interests.”