Taiwan's TSMC fires staff, probes suspected trade secret leak of breakthrough 2nm chip

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, has dismissed several employees and launched an internal investigation into suspected leaks of trade secrets linked to its advanced 2-nanometre (nm) chip technology.

The company said it had uncovered “unauthorised activities during routine monitoring,” which led to the discovery of potential breaches involving sensitive information. The case has now been referred for judicial review in Taiwan, TSMC confirmed to Nikkei Asia.

According to initial findings, the suspected violations relate to former employees attempting to access proprietary data concerning the development and production of the 2-nm process, a next-generation technology considered critical to the global semiconductor industry.

What is the 2-nm chip tech? 

The 2-nm process is currently the most advanced chip manufacturing technology under development and is expected to enter mass production later this year. It is being pursued by only a handful of global players, including TSMC, Samsung Electronics, Intel, and Japan’s Rapidus. The node is known for its technical complexity and significant capital requirements.

TSMC has not publicly disclosed the specific nature of the data involved or the intended purpose of the suspected leaks. The company is investigating whether the information was transferred externally and whether additional parties were implicated.

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Under Taiwan’s National Security Act, amended in 2022, trade secrets classified as “National Core Critical Technologies” are protected by criminal law. Unauthorised use or disclosure of such information can lead to prosecution.

TSMC’s market presence

TSMC commands more than triple the market share of its closest competitor, Samsung. In 2024, it produced nearly 12,000 chip designs for over 500 customers, with an annual capacity of approximately 17 million 12-inch equivalent wafers. The company operates manufacturing facilities across Taiwan, the United States, Japan, China and Europe, including a new fabrication plant under construction in Germany.

For the quarter ending 30 June 2025, TSMC reported a consolidated revenue of NT$933.79 billion ($30.07 billion), up 38.6 per cent year-on-year. Net profit rose 60.7 per cent to NT$398.27 billion ($13.5 billion). Advanced process technologies, defined as 7-nm and below, accounted for 74 per cent of total wafer revenue, with 3-nm and 5-nm nodes contributing 24 per cent and 36 per cent respectively.

The company forecasts third-quarter revenue between $31.8 billion and $33 billion, fuelled by robust demand for artificial intelligence and high-performance computing applications.