TSMC Probes 2nm Chip Leak, Sacks Employees

Trade secrets, advanced chips, and a major breach; TSMC fires staff and launches legal action over suspected leaks tied to its cutting-edge 2nm technology.

Taiwan Semiconductor Manufacturing Company (TSMC) has dismissed several employees and initiated legal action over suspected breaches of internal security protocols linked to confidential chip development data.

The company revealed it had uncovered unauthorised activities during routine internal monitoring, which pointed to a potential leak of trade secrets. Reports suggest that former staff may have attempted to access sensitive information related to TSMC’s highly advanced 2-nanometre (nm) chipmaking process.

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The 2nm technology represents the forefront of semiconductor innovation. It is expected to enter mass production later this year and is being pursued by only a handful of global players, including TSMC, Intel, Samsung, and Japan’s Rapidus.

TSMC has not disclosed specifics about the compromised data or its possible destination, but authorities are investigating whether the information was shared externally and whether more individuals were involved.

The matter is currently under judicial review in Taiwan. If found guilty under Taiwan’s amended National Security Act, the accused could face criminal penalties, as the 2-nm process is classified under ‘National Core Critical Technologies’.

TSMC plays a critical role in global tech supply chains. It manufactures chips for major firms like Apple, NVIDIA, and Google, without designing or branding its own products. In 2024, TSMC produced nearly 12,000 chip designs across facilities in Taiwan, the US, Japan, China, and Europe.

Despite the security incident, TSMC posted a strong financial performance. For the quarter ended June 30, 2025, net profit surged 60.7% to NT$398.27 billion ($13.5 billion). Advanced chip nodes, especially 3nm and 5nm, led revenue growth.

Looking ahead, TSMC forecasts Q3 revenue to be between $31.8 billion and $33 billion, driven by robust demand from the AI and high-performance computing sectors.