TSMC Initiates Lawsuits Over Industrial Espionage

IP Theft TSMC Initiates Lawsuits Over Industrial Espionage

2025-08-06 From Sebastian Gerstl | Translated by AI 1 min Reading Time

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Breach of secrecy at TSMC: The contract manufacturer for semiconductors has taken legal action against some current and former employees. They are accused of passing on industrial secrets related to TSMC's 2-nanometer technology.

TSMC employees in the new manufacturing facility in Arizona: The leading contract manufacturer for semiconductors has filed a series of lawsuits against former employees. The focus is primarily on the theft of industrial secrets regarding the in-house 2-nanometer manufacturing process.(Image: TSMC) — TSMC employees in the new manufacturing facility in Arizona: The leading contract manufacturer for semiconductors has filed a series of lawsuits against former employees. The focus is primarily on the theft of industrial secrets regarding the in-house 2-nanometer manufacturing process.
(Image: TSMC)

Taiwan Semiconductor Manufacturing Company (TSMC), one of the world's most important manufacturers of advanced semiconductors, has initiated legal action against several (former) employees. The reason is suspicions of the disclosure of confidential information regarding 2-nanometer chip technology.

The company discovered the alleged violations through its routine network monitoring. According to TSMC, the unauthorized activity was detected early, enabling a swift internal investigation. Subsequently, disciplinary measures were taken against the individuals involved.

According to media reports, the accused are former employees who allegedly tried to secure sensitive know-how regarding the development status of advanced chip processes. Whether information was actually passed on or in whose interest it was remains the subject of ongoing investigations.

TSMC emphasizes its zero-tolerance policy towards any violations of trade secret protection. The company stated that it will exhaust all legal means to safeguard intellectual property and competitiveness.

The strategic importance of semiconductors, particularly in connection with applications in artificial intelligence, has significantly increased in recent years. Companies like Apple, Nvidia, or Qualcomm, which are among TSMC's clients, are directly affected by the security of these technologies.

As the case is currently under legal review, TSMC is withholding further details. However, they intend to strengthen internal control mechanisms and closely cooperate with relevant authorities to prevent similar incidents early in the future. (sg)

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Date: 08.12.2025

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