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Industrial espionage scandal at the world's largest chip producer, several employees have been detained

Industrial espionage scandal at the world's largest chip producer, several employees have been detained

Employees of TSMC in one of the company's research laboratories, photo: Satuk Bugra Kutlugun / AFP / Profimedia Images

Taiwanese authorities have detained six people for the alleged theft of some industrial secrets of Taiwan Manufacturing Semiconductor (TSMC), the largest chip producers in the world, reports Reuters and Bloomberg on Tuesday.

People were detained at the end of last month, after TSMC reported that an internal investigation discovered that former and current employees have illegally obtained information within the company, Taiwan's Higher Prosecutor's Office said in a statement.

Three of the detained persons – two current employees and one who worked in the past for the company – are suspected of violating the law on the national security of Taiwan, the statement said. Their identities have not been revealed, except that the former employee is named Chen.

According to the prosecutor's office, two other persons were released on bail, and one was released without restrictions.

Company claimed in court the employees who suspect espionage

TSMC announced earlier on Tuesday that it had initiated legal procedures and took disciplinary measures against employees involved in potential industrial secrets, after detecting unauthorized activities during routine monitoring.

The company said that “its monitoring mechanisms, comprehensive and solid” allowed the early identification of the problem, leading to internal investigations and measures against the persons involved.

TSMC stated that the criminal complaint, currently in the judicial review phase, prevents it from providing more details.

Nikkei Asia has previously reported that leakage of information would involve several former employees suspected of trying to obtain essential information and owners of TSMC technology for 2 nanomers.

TSMC holds the world's most advanced technology for 2 nanomers chips

There were no immediate details about the suspected reasons or if any information was transmitted further, and the investigations are ongoing to establish the extent of the drain and if other people were involved, according to the information obtained by the journalists from Nikkei, the largest financial newspaper in Asia.

Taiwanese publication United Daily News wrote that prosecutors and investigators have also searched Tokyo Electron offices, without mentioning the source of information. Tokyo Electron and the prosecutors' office refused to comment.

The TSMC technology for 2 nanometers chips is the most advanced in the semiconductor industry, both in terms of density and energy efficiency, according to the company's website.

TSMC, who has among the clients the top companies in the industry such as Nvidia, Apple and Qualcomm, has reminded of its zero tolerance policy against violations on industrial secrets and said that any involved person will fully follow.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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