TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY (TSMC) files a lawsuit against employees suspected of illegally stealing confidential business information.
TSMC Cracks Down on Trade Secret Breach
Taiwan Semiconductor Manufacturing Co. (TSMC) has initiated legal proceedings against an unknown number of employees following a potential breach of trade secrets, the company announced today.
The breach was detected during routine network monitoring by TSMC, which maintains a zero-tolerance policy towards actions that compromise the protection of trade secrets or harm the company's interests. An internal investigation was conducted, leading to disciplinary action against certain employees.
According to reports, at least two individuals are involved in the case. One is a current TSMC employee who worked on the company's cutting-edge 2-nanometer (2nm) chip manufacturing process, while the other is a former TSMC employee who now works at Tokyo Electron Taiwan Ltd., a subsidiary of the Japanese company Tokyo Electron.
The Taiwanese High Prosecutors Office has arrested three individuals in total, which includes these two former TSMC employees and a third suspect, although the role of the third person is not clearly specified.
The specific roles within TSMC for these employees remain undisclosed due to the sensitive nature and ongoing legal proceedings. However, it is alleged that these employees stole trade secrets related to TSMC's 2nm chip manufacturing process and shared them with third parties, possibly assisting the Japan-based foundry startup Rapidus in advancing its semiconductor manufacturing capabilities.
Tokyo Electron confirmed that the former employee from their Taiwan subsidiary is involved but stated no evidence has yet shown that confidential information was shared with third parties beyond this case. TSMC has taken disciplinary actions, including termination of the implicated employees, and has launched legal proceedings to address the breach.
In a statement, TSMC emphasized its zero-tolerance policy towards violations of its policies and stated that it will continue to strengthen its internal management and monitoring systems and work closely with relevant regulatory authorities to protect its competitive advantage and operational stability. The company also reiterated its commitment to safeguarding its core competitiveness and the shared interests of all its employees.
TSMC is unable to provide additional details about the case due to it being under judicial review. The unauthorized activity was identified early by TSMC, and violations of its policies are dealt with strictly and pursued to the fullest extent of the law.
The breach at TSMC involved AI and IoT technology, as it was related to the company's 2-nanometer chip manufacturing process, a key component in the field of education-and-self-development and emerging technologies such as autonomous vehicles and AI-powered devices. The employees under investigation are accused of sharing these trade secrets with third parties, potentially benefiting companies like Rapidus and Tokyo Electron.
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