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TSMC Reportedly Fires Staff over Suspected 2nm Leak Ahead of Mass Production

hskuo

Well-known member

News] TSMC Reportedly Fires Staff over Suspected 2nm Leak Ahead of Mass Production​


2025-08-05 Semiconductors editor


News
TSMC-624x416.jpg

Please note that this article cites information from Nikkei Asia.

Right before the world’s most advanced 2nm entering mass production, foundry giant TSMC has reportedly fired multiple employees and taken legal action after uncovering suspected attempts to steal sensitive information related to the node, Nikkei Asia reports.

Sources told Nikkei the ex-staffers allegedly tried to access confidential 2nm development and production data while still at the company. TSMC confirmed it had uncovered “unauthorized activities” during routine checks, which pointed to a potential leak.

Nikkei notes that the case could carry national security implications, given that TSMC’s 2nm process is the world’s most advanced. At present, only TSMC, Samsung, Intel, and Rapidus remain in the race to develop such cutting-edge technology.

According to TrendForce, Samsung aims to start 2nm mass production in the first half of 2026, though its Tesla-backed AI6 chip project likely won’t materialize before 2028. Intel, meanwhile, is reportedly shifting focus from 18A to 14A in a bid to win over clients.

The High Prosecutors Office of Taiwan confirmed to Nikkei that the case falls under the National Security Act of 2022 and is being investigated by its Intellectual Property Branch. Investigations are ongoing into the extent of the breach, possible external links, and the intent behind the unauthorized access, according to Nikkei.

Notably, Nikkei suggests this marks the first major case involving semiconductor technology to be probed under the act, which was designed to prevent sensitive technologies from leaking to foreign adversaries. The Taiwanese government has outlined a list of “National Core Critical Technologies,” which includes integrated circuit technologies more advanced than the 14nm node. Unauthorized reproduction, use, or disclosure of trade secrets related to these core technologies is considered a violation of the law, the report notes.
 
It looks like the story did not identify who was requesting the information (Samsung? Intel? China? Rapidus?).

I assume that the perpetrators would already have authorized access. If it was not authorized, they should not be able to get the information, with the trade secret protection system in place.
 
It looks like the story did not identify who was requesting the information (Samsung? Intel? China? Rapidus?).

I assume that the perpetrators would already have authorized access. If it was not authorized, they should not be able to get the information, with the trade secret protection system in place.
The following report said TEL engineer involved. All vendors should have signed NDAs and it seems someone cross the line.
 
TSMC's 2nm process technology leak sparks Supreme People's Procuratorate search of Japanese company, arrest of three engineers approved

TSMC's 2-nanometer process technology leaked, the senior procuratorate searched Japanese businessmen and 3 engineers were approved

United Daily News reporter Zhang Hongye/Taipei Instant Report, August 5, 2:14 PM: Suspected technology leaks have surfaced within TSMC. Sources familiar with the matter indicate that some former employees illegally obtained key 2nm chip manufacturing technology while employed. The individuals involved have been dismissed. The Taiwan High Prosecutors Office stated that prosecutors summoned and arrested three engineers involved in the case from July 25 to 28. Following the interrogation, they filed a request for detention and incommunicado with the Intellectual Property and Commercial Courts, which was granted.

It is understood that prosecutors conducted a search of a company called Tokyo Electron, which has offices in the Hsinchu Science Park. TSMC's 2nm process is difficult to develop and requires extremely high investment costs. Currently, only a handful of companies worldwide, including TSMC, Samsung, Intel, and Japan's Rapidus, are still pursuing research and development. TSMC expects to begin mass production of 2nm chips by the end of this year.

This technology is currently considered the world's most advanced chip manufacturing process. According to Nikkei Asia, some former TSMC employees attempted to obtain and leak core technical information related to the development and production of 2nm chips while employed there. The Supreme Prosecutors Office stated that the Intellectual Property Prosecution Branch conducted an investigation from July 25 to 28 into the illegal acquisition of TSMC's trade secrets related to key national core technologies. Prosecutors directed the investigation, which involved the Hsinchu City Investigation Bureau, the Information Security Station, and the Taipei Airport Station. The investigation resulted in the arrest of six engineers, including Chen and Wu, at six locations. A request for detention and release of three engineers, including Chen and Wu, was granted. Chen was a former engineer, while Wu and two others were current engineers. Prosecutors stated that the case stemmed from TSMC's proactive identification of unusual access to employee files. by TSMC.

--United Daily reporter Zhang Hongye/Taipei real-time report 8/05 14:14 TSMC broke out suspected technology leaks. People familiar with the matter pointed out that some former employees illegally obtained key technologies for the 2--meter chip process during their tenure, and the person involved has been dismissed. Taiwan's Higher Procuratorate pointed out that the prosecution had summoned and detained three engineers involved in the case from July 25 to 28, and after the news, he filed a petition for detention and ban on the court. It is understood that the prosecutor and the inspector searched for a manufacturer called Tokyo Electron, "Japan Tokyo Power", which has an office in the Hsinchu Science park. TSMC's 2-nanometer process development is difficult and the investment cost is extremely high.

Currently, only a few companies in the world, including TSMC, Samsung, Intel and Japan's Rapidus, are still continuing to develop. TSMC is expected to mass-produce 2-nanometer chips by the end of this year. This technology is regarded as the world's most advanced chip manufacturing process at this stage. According to Nikkei Asia News, some former employees of TSMC attempted to obtain and leak core technical information for the development of 2nm chips and the production of when they were in office. The Higher Procuratorate Office pointed out that from July 25 to 28, the Smart Property Procuratorate Branch secretly obtained illegally on the implementation of TSMC's national core key technologies, and the prosecutor directed the investigation of the Hsinchu City Investigation Station, Information Security Station and North Machinery Station of the Investigation Bureau.

A total of 6 locations were searched for the entire case, and six projects with surname Chen and Wu were arrested. Three engineers including Chen and Wu were allowed to be arrested. Among them, Chen Nan is a former engineer from , and Wu Nan and two others are current engineers. The prosecution pointed out that this case was a case where TSMC actively found out that the file contact of employees was abnormal. After TSMC internal investigation, it was found that TSMC's national core key technology business secrets were found on , and it was suspected that they were illegally obtained by former employees and employees. Therefore, it submitted a notice to the Higher Procuratorate Department. TSMC's national core key technology business secrets and the purpose of , clarify whether there is any further outflow of the secret, and strictly prosecute the offenders in accordance with the criminal circumstances of the defendants and others involved in the case and the damage to TSMC.


https://udn.com/news/story/7321/8918948
 
Just saw the news today:
Don't know why it involved Tokyo Electron.
 
Tokyo Electron declined to comment, and its failure to deny such news report that police searched its offices suggests a serious situation.


"Taiwanese media outlet United Daily News said prosecutors and investigators had also searched the offices of Tokyo Electron, without citing where they had obtained the information. Tokyo Electron and the prosecutors' office declined to comment."

 
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it's not weird considering many companies do this

It’s weird because Tokyo Electron isn’t a competitor of TSMC. In fact, it’s one of TSMC’s top equipment suppliers. It’s in both companies’ interest to respect and protect intellectual property.
 
It’s weird because Tokyo Electron isn’t a competitor of TSMC. In fact, it’s one of TSMC’s top equipment suppliers. It’s in both companies’ interest to respect and protect intellectual property.

Tokyo Electron has close ties to Rapidus, I think that is the point.
 
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