3 TSMC employees arrested for allegedly stealing trade secrets

Taipei, Aug. 5 (CNA) Three current and former employees of Taiwan Semiconductor Manufacturing Co. (TSMC) have been arrested for allegedly stealing sensitive trade secrets related to the company's advanced 2-nanometer technology, prosecutors said Tuesday.

According to the Taiwan High Prosecutors Office, TSMC discovered unusual access to confidential files during internal monitoring. After conducting its own investigation, the company suspected that national core technology may have been illegally obtained by three individuals.

TSMC then reported the case to prosecutors, who conducted search and arrest operations from July 25 to 28, the office said in a press release.

According to prosecutors, they obtained court approval following questioning to detain all three suspects, citing possible violations of the National Security Act.

Under the Act, it is a crime to reproduce, use, or leak trade secrets involving national core technologies to foreign powers or hostile entities without authorization.

This is the first case involving unauthorized access to Taiwan's national core technology, prosecutors said, adding that they plan to investigate the suspects' motives and determine whether any information was leaked further.

TSMC also confirmed the incident, saying it was detected through routine monitoring. The company said it acted swiftly to discipline the individuals and pursue legal action.

TSMC reaffirmed its zero-tolerance policy toward trade secret violations and pledged to enhance internal controls and fully cooperate with law enforcement.

The company's 2nm technology is expected to enter mass production in late 2025. Compared to its 3nm process, it offers up to 15 percent higher speed or 30 percent lower power consumption. It will be used in smartphones and high-performance computing.