Chipmaker TSMC uncovers potential trade secrets theft, three arrested in Taiwan

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) has discovered unauthorized activities by employees suspected of stealing trade secrets related to its advanced computer chips, leading to the firing of several workers and the involvement of Taiwanese authorities [1][3]. Group 1: Company Actions - TSMC has a zero-tolerance policy towards actions that compromise trade secrets and has stated that violations will be pursued to the fullest extent of the law [3]. - The company has fired multiple employees suspected of attempting to steal information related to its leading-edge 2-nanometer chips, which are set to enter mass production later this year [3][5]. - TSMC has contacted Taiwanese authorities after uncovering the security breach during routine monitoring [1]. Group 2: Legal Proceedings - The Taiwan High Prosecutors Office has arrested three individuals involved in the alleged theft and conducted searches of their homes [2][4]. - The investigation was initiated after TSMC observed unauthorized access to secure company files [2][6]. Group 3: Industry Context - The theft of trade secrets has raised concerns among US and Taiwanese officials, particularly in light of rising tensions with China [5]. - TSMC's operations are sensitive due to its extensive list of top clients and the company reportedly has over 200,000 trade secrets stored in its internal systems [5]. - The demand for computer chips is high, especially for powering artificial intelligence models, with companies like Nvidia reaching a market valuation of nearly $4.4 trillion [7].