Taiwan Semiconductor Manufacturing Co. (TSMC) has fired several employees after discovering they tried to steal trade secrets tied to its most advanced 2-nanometer chip technology. The company also confirmed it has launched legal action, while Taiwan’s High Prosecutors Office is investigating the case under the country’s National Security Act.
The employees allegedly accessed sensitive files tied to the development and production of 2nm chips. These chips are expected to power Apple’s A20 processor in the iPhone 18 series next year. TSMC identified the breach after its monitoring system flagged irregular access patterns during a routine check. This 2nm technology plays a key role in TSMC’s leadership in semiconductor manufacturing and holds the status of a core national asset under Taiwan’s government.
Breach Detected Internally, Prosecutors Step In
TSMC said it found “unauthorized activities” during routine system monitoring, which led to the discovery of the attempted leak. The company responded with immediate disciplinary actions, including firing those involved and initiating legal proceedings. It has not disclosed the exact information the suspects accessed, but it confirmed that the breach involved its 2nm chip technology, the most advanced process currently in commercial development.
According to Nikkei Asia, prosecutors are now investigating whether the suspects violated Taiwan’s National Security Act, which protects technologies listed as “National Core Critical Technologies.” Under the law, using or disclosing such secrets without proper authorization is a criminal offense. Authorities say there is “strong suspicion” that at least three individuals, including both current and former employees, colluded in accessing and attempting to extract the trade secrets.
Apple’s 2nm A20 Chips Could Be Affected
TSMC plans to start mass production of its 2nm chips later this year. Apple will likely become the first customer. Analyst Ming-Chi Kuo expects the iPhone 18 lineup to use these A20 chips across all four models, a shift from Apple’s earlier strategy of reserving the latest chip tech for Pro versions.
There’s no evidence that the breach exposed any Apple-specific designs. Still, the attempt underscores how exposed advanced chip development has become. Nikkei Asia notes this is the first major case Taiwan is investigating under its National Security Act since expanding the law to include sub-14nm semiconductor technologies.
In a statement, TSMC said, “We maintain a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests.” It also stressed the complexity of duplicating its chipmaking technologies, pointing to the specialized know-how and years of development required.
TSMC has pledged to cooperate fully with authorities and to further tighten internal controls to protect its intellectual property. The company also reaffirmed its commitment to protecting its competitive advantage, employee interests, and Taiwan’s leadership in semiconductor manufacturing.
