Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, said Tuesday it had discovered “unauthorized activities” of employees suspected of stealing trade secrets related to its most advanced computer chips.
TSMC, which makes chips for major firms like Apple and Nvidia, reportedly fired several workers after uncovering the security breach “during routine monitoring” and contacted Taiwanese authorities.
The Taiwan High Prosecutors Office said it had arrested three people involved in the alleged theft and had searched their homes, the Wall Street Journal reported. The probe began after TSMC observed them accessing secure company files.
“TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the company said in a statement.
“Such violations are dealt with strictly and pursued to the fullest extent of the law,” the company added. “We remain committed to safeguarding our core competitiveness and the shared interests of all our employees.”
Nikkei Asia earlier reported that the company had fired multiple employees suspected of trying to steal information related to its leading-edge 2-nanometer chips, which are set to enter mass production later this year.
TSMC did not provide further specifics since the case is still under judicial review.
US and Taiwanese officials have each expressed growing alarm about the theft of trade secrets in recent years as tensions rise with China.
TSMC’s work is particularly sensitive due to its roster of top clients. The company once said it has more than 200,000 trade secrets stored in its internal systems.
Computer chips are in high demand because they are needed to power artificial intelligence models. Nvidia has become the world’s most valuable company with a market valuation of nearly $4.4 trillion.
The Trump administration has cultivated closer ties with TSMC since the president took office.
In March, TSMC pledged to invest $100 billion to boost production in the US as part of a four-year project.
