TSMC's 2-nanometer technology is considered the most advanced in the semiconductor industry, known for its high density and energy efficiency.

This technology shift is projected to achieve a 10% to 15% speed improvement and a 25% to 30% reduction in power consumption compared to the current 3-nanometer technology.

As a critical player in Taiwan's economy, TSMC accounts for 8% of the nation's GDP and 12% of its exports, making the protection of its intellectual property vital.

This incident marks the first case of trade secret theft prosecuted under Taiwan’s National Security Act, aimed at safeguarding the country’s semiconductor industry.

The investigation highlights the increasing value of intellectual property in the context of rising geopolitical tensions involving the U.S. and China.

The incident has sparked discussions about the need for improved international cooperation on intellectual property protection, particularly given TSMC's critical role in the global semiconductor supply chain.

In response to the incident, TSMC is enhancing cybersecurity measures, including AI-driven anomaly detection and stricter employee vetting to prevent future incidents.

TSMC's CFO expressed optimism for the third quarter of 2025, anticipating continued support from demand for advanced process technologies.

Taiwan Semiconductor Manufacturing Co (TSMC) has initiated legal action against several employees suspected of attempting to steal trade secrets.

The unauthorized activities were detected during routine monitoring, prompting internal investigations and strict measures against those involved.

Despite the incident, TSMC stated that no customer data was compromised and that operations remain unaffected, although it raises concerns about intellectual property protection amid rising geopolitical tensions.

The theft involves critical schematics and manufacturing protocols necessary for scaling TSMC's advanced 2-nanometer chip production, which is set to begin by late 2025.