5 days ago
TSMC arrests three after finding leaks of trade secrets
1 of 2 | On Tuesday, Taiwain Semiconductor Manufacturing Co. Ltd. took "strict" disciplinary action against 3 accused workers after a "routine monitoring" led to the discovery of a leak in valuable company trade secrets, TSMC officials confirmed. File Photo By David Chang/EPA
Aug. 5 (UPI) -- Three Taiwan Semiconductor Manufacturing Co. employees were taken into custody Tuesday after company officials detected "unauthorized activities" and a leak of its trade secrets related to "core technologies."
TSMC, one of the world's largest computer chip manufacturers in Taiwan said it took "strict" disciplinary action against its accused workers and legal proceedings were launched after a "routine monitoring" led to the discovery, company officials told CNBC and The New York Times in a statement.
"Such violations are dealt with strictly and pursued to the fullest extent of the law," it said. "We remain committed to safeguarding our core competitiveness and the shared interests of all our employees."
TSMC previously indicated its internal system held over 200,000 "trade secrets" related to critical tech and data.
According to sources familiar with the matter, multiple former TSMC employees are under suspicion of attempting to obtain the company's proprietary intellectual property related to 2-nanometer chip development and production.
The company stated its "comprehensive and robust monitoring mechanisms" had identified the issue early which permitted TSMC officials to execute a swift internal investigation.
TSMC's security breach arrived as the Chinese government met last week with Nvidia officials over potential security risks in an AI chip it developed for sale in China.
TSMC is a leading global producer of advanced chips that has Apple and Nvidia among its client base.
Company officials stated that TSMC "maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests."
TSMC added it was unable to provide further information at the present time.
In November, TSMC was part of a more than $6 billion deal with the U.S. Department of Commerce under then-President Joe Biden.
The geopolitical stakes around Taiwan's semiconductor dominance have soared as China escalates military pressure, through increased fighter jet incursions, large-scale naval drills and explicit threats of reunification.
