According to a Nikkei Asia report, Taiwan Semiconductor Manufacturing Company (TSMC) has fired employees and started legal action after internal monitoring exposed suspected theft of its 2nm chip technology under Taiwan’s national security law.
The development is significant because this manufacturing process is expected to be the foundation for Apple’s upcoming A20 chips, which will power next year’s iPhone 18 lineup.
The incident emerged during routine internal security monitoring, prompting the company to immediately dismiss those involved. Prosecutors confirmed the detention of three individuals, including at least one former employee surnamed Chen and two recent TSMC engineers, who are suspected of accessing confidential development and production data tied to TSMC’s cutting‑edge 2nm node.
Authorities conducted searches at the homes and workplaces of the suspects, including the Taiwan office of Japanese chip equipment maker Tokyo Electron, as part of an ongoing inquiry into whether the information was shared with external entities.
This marks the first major case under Taiwan’s updated National Security Act, which protects technologies more advanced than the 14nm node as “National Core Critical Technologies.” Under the law, unauthorized misuse or disclosure of these technologies can lead to up to 12 years in prison and fines exceeding US $3 million.
TSMC, which manufactures chips for tech giants like Apple, Nvidia, and Qualcomm, affirmed it detected the breach early thanks to its “comprehensive and robust monitoring mechanisms.” The company made clear that any attempt to undermine its trade secrets would be met with zero tolerance and will be pursued to the fullest extent of the law.
At present, little is known about the motives behind the alleged leak or whether foreign parties were involved. Prosecutors have not confirmed involvement of another country or corporation, but the fact that Tokyo Electron was included in search warrants suggests an attempt to trace potential external links.
As TSMC prepares to ramp up production of its 2nm node, it has reinforced internal governance and continues working closely with Taiwanese authorities to deter future breaches.
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Gee, I wonder WHICH country desperately needs that technology as it's still stuck at 7nm SoCs. 😇
It's useless for the country that doesn't have the machine to make 2nm chips. It's useful for the country that DOES have the machine. So I guess you have the answer.
I'm pretty sure that the theft targeted not the wafers but the actual machines. At least that's what other sources seem to indicate.
Huawei for example has the know-how to design the chips (they designed the Kirin family), but lacks the ability to shrink the dies.
You just don't want to admit your mistake. Japanese TEL has fired employees that were involved. There are no other sources indicating anything. At one point, you are pretty sure. Then "seem to"? Can you read the article again? TEL was mentioned. You can't just imagine.
Who pi$$ed in your cornflakes keyboard warrior? Your mom didn’t bring you breakfast this morning?
I stated some facts, you SEEM (you love that word, don’t you) to disagree, that’s fine.
You know, last I checked you’re not Mafalda. You have read ONE article, didn’t bother to cross-check and now act all smug and all-knowing. Sheesh.