5 days ago
Taiwan Investigates TSMC Employees Over Possible Trade Secret Theft
Taiwan Semiconductor Manufacturing Company, the maker of most of the world's cutting edge computer chips, told Taiwanese prosecutors of its suspicions that some current and former employees had been involved in stealing its trade secrets, the company said on Tuesday.
'TSMC recently detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks,' said Nina Kao, a spokeswoman for the company.
The company has taken disciplinary action against the people involved, Ms. Kao said. The case is being investigated by the intellectual property branch of the Office of the High Prosecutor in Taiwan.
Nieh Chung, a prosecutor at the branch, said that three people had been detained. Three others had been called in and then released, he added.
The possible leak of company secrets comes at a tense time between Taiwan and the United States as officials in Washington weigh tariffs on semiconductors, Taiwan's main export, on top of the 20 percent tariffs announced last week on the island's other exports to the United States.
TSMC makes chips for tech giants like Nvidia and Apple.
The governments of both the United States and Taiwan view access to chips to be a national security concern.
Last year, TSMC-made chips were found in a device from the Chinese telecommunications company Huawei, which was at the time on a U.S. trade blacklist and is now also on a restricted trade list in Taiwan.
Only a handful of companies are trying to make chips as advanced as TSMC's, which are the product of decades of investment in Taiwan, and they rely on many of the same suppliers and chipmakers.
TSMC suspected the employees of illegally acquiring company trade secrets 'related to core technologies,' which could be a violation of Taiwan's national security law, the prosecutor's office said in a statement.
The site at issue is one where TSMC makes its most advanced chips, in Hsinchu, where the company has its headquarters, according to two people familiar with the investigation who were not authorized to speak publicly.
'TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests,' Ms. Kao said.
