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Taiwan arrests TSMC employees for allegedly stealing 2nm chip tech
Authorities have not disclosed whether any data reached foreign entities

Taiwan arrests TSMC employees for allegedly stealing 2nm chip tech

Aug 06, 2025
04:23 pm

What's the story

Three employees from Taiwan Semiconductor Manufacturing Company (TSMC), a major supplier of chips for Apple, have been arrested in Taiwan. The suspects are accused of stealing sensitive information regarding TSMC's next-generation chip technology. If convicted, they could face up to 12 years in prison. The stolen data pertains to the company's cutting-edge 2nm chip technology, which is expected to enhance phone performance and efficiency. TSMC holds over 90% of the world's most advanced chip production, making the leak particularly sensitive.

Detection

Arrests made after suspicious activity flagged by TSMC

TSMC flagged the suspected leak after routine internal monitoring detected "unauthorized activities" and unusual access to secure files. The company fired the involved employees and reported the breach to prosecutors. Homes and offices of the accused were searched. However, authorities have not disclosed whether any data reached foreign entities. The case is the first to be probed under Taiwan's revised national security law, which now provides stringent safeguards for the country's most valuable technologies.

Penalties

Revised law imposes severe penalties for tech leaks

Under the revised law, anyone attempting to leak or steal information about key technologies could face severe punishment. This includes jail time and a fine of more than $3 million. The case highlights the value and vulnerability of high-tech designs in today's world. The trade secrets breach comes during an intensifying global chip war, with Taiwan as a strategic target. Analysts say China-linked actors have engaged in cyberattacks and talent poaching aimed at acquiring cutting-edge semiconductor know-how.