tsmc hit by 2nm tech theft: former employees arrested, tokyo electron searched

2025-08-05 tsmc

Taipei, Tuesday, 5 August 2025.
three former tsmc employees face national security charges after allegedly stealing confidential 2nm technology. the taiwan high prosecutors office is investigating. tokyo electron, a key tsmc partner, was also searched. the 2nm process is crucial for next-generation chips. a security expert called the breach a significant blow to tsmc’s competitive advantage. tsmc insists on zero tolerance for actions violating trade secrets. the investigation started after tsmc detected abnormal file access. authorities are reviewing potential violations of taiwan’s national security law. the national science and technology council stated the maximum penalty is 12 years imprisonment and a fine of NT$100 million.

stock reaction and market leadership

Despite the news, tsmc’s stock (2330) showed resilience, closing up NT$15, a 1.322 or 1.32% increase, at NT$1,150 today [7]. This suggests that investors are currently not significantly concerned about the long-term impact of the security breach on tsmc’s market position [7]. However, the incident raises questions about the security of tsmc’s intellectual property and its ability to maintain its lead in advanced semiconductor manufacturing [3]. The company’s strong monitoring mechanisms allowed early detection of the breach [7].

manufacturing capacity and geopolitical risks

The theft of 2nm technology introduces uncertainty regarding tsmc’s manufacturing timeline [3]. The 2nm process is expected to enter mass production by the end of the year, and any delays could affect tsmc’s ability to meet customer demand [4][7]. Moreover, the involvement of a foreign company, Tokyo Electron, adds a layer of geopolitical complexity [1][4]. If the leaked information compromises tsmc’s technology, Taiwan’s national security could be significantly damaged, according to a national security expert [3].

insider threat and security measures

The incident highlights the challenge of protecting intellectual property from insider threats, even with strict security protocols [4]. Reportedly, the employees exploited remote work loopholes to photograph confidential information [4]. Tsmc’s internal investigation identified the employees involved, leading to their dismissal and legal action [3][7]. Tsmc has a zero-tolerance policy for any behavior that violates trade secret protections or damages the company’s interests [3][5]. The company emphasizes its commitment to thoroughly investigate and strictly handle such violations [1][5].

Bronnen

tsmc security semiconductor theft