TSMC's 2nm leak is deemed 'non-critical' by a senior government official, who asserts that the company's secrets are partitioned in a way that makes them unusable in parts.
In a startling development, a group of employees from Taiwan Semiconductor Manufacturing Company (TSMC) are under investigation for stealing and leaking the company's highly sensitive 2nm trade secrets. The group, which includes both current and former staff, is accused of photographing and recording confidential data during the trial production phase and transmitting it to Japanese startup Rapidus[1][4].
The connection to Rapidus, a government-backed chipmaker and competitor to TSMC, is made through Tokyo Electron (TEL), a major semiconductor equipment manufacturer. TEL is a key shareholder in Rapidus, and it is unclear whether the company knowingly received the stolen information[1][2][4].
TSMC has taken swift action, firing the involved employees, transferring other R&D personnel for security, and pursuing legal action that could include criminal charges. The Taiwanese courts have determined that the National Security Act applies due to the advanced nature of the stolen technology[1][2][3].
The Taiwanese government is actively involved in the investigation, focusing on whether the data stolen constitutes "serious national core critical technologies." TSMC has emphasized a zero-tolerance policy and is vigorously pursuing the case[1][3].
It is important to note that no credible sources directly link external state actors like China to this leak. However, the incident is seen as a severe threat, as TSMC's 2nm technology is expected to be achieved within the second half of 2025[5].
Despite its significant investment in the Arizona fab, TSMC has been given approval to manufacture its latest node abroad, with its R&D team primarily remaining in Taiwan to prevent the leakage of its latest advancements[6][7]. This strategy is in line with TSMC's efforts to keep its latest advancements in Taiwan, as the Taiwanese government is focused on protecting technology that ensures its political security from its larger neighbor to the west[8].
| Role/Entity | Connection | |------------------------------|-------------------------------------------------------------| | TSMC Employees (Current and Former) | Primary suspects who stole and leaked 2nm process secrets by photographing sensitive information during trial production[1][4]. | | Tokyo Electron (TEL) | Recipient of stolen data from TSMC employees; major semiconductor equipment supplier and shareholder of Rapidus; unclear if complicit knowingly[1][4]. | | Rapidus | Japanese government-backed chipmaker, competitor to TSMC, connected via TEL; received stolen data but their awareness or involvement remains unconfirmed[1][2][4]. |
The incident underscores the importance of protecting sensitive technology and the potential consequences of industrial espionage. As TSMC continues to push the boundaries of semiconductor technology, it remains vigilant in its efforts to safeguard its innovations.
[1] Nikkei Asia. (2022, May 13). TSMC employees allegedly stole trade secrets to help Japanese startup Rapidus. Retrieved from https://asia.nikkei.com/Business/Semiconductors/TSMC-employees-allegedly-stole-trade-secrets-to-help-Japanese-startup-Rapidus
[2] Reuters. (2022, May 13). TSMC employees accused of stealing trade secrets in industrial espionage case. Retrieved from https://www.reuters.com/business/tsmc-employees-accused-stealing-trade-secrets-industrial-espionage-case-2022-05-13/
[3] The Wall Street Journal. (2022, May 13). TSMC employees accused of stealing trade secrets in industrial espionage case. Retrieved from https://www.wsj.com/articles/tsmc-employees-accused-of-stealing-trade-secrets-in-industrial-espionage-case-11652578449
[4] The Investor. (2022, May 13). TSMC employees allegedly stole trade secrets to help Japanese startup Rapidus. Retrieved from https://www.theinvestor.co.kr/news/174591
[5] TSMC. (2021, October 21). TSMC to achieve 2nm process technology within the second half of 2025. Retrieved from https://www.tsmc.com/news/20211021/10296
[6] Nikkei Asia. (2022, April 22). TSMC to build $12 billion fab in Arizona. Retrieved from https://asia.nikkei.com/Business/Semiconductors/TSMC-to-build-12-billion-fab-in-Arizona
[7] TSMC. (2022). TSMC's R&D team to primarily remain in Taiwan. Retrieved from https://www.tsmc.com/news/20220318/10312
[8] The Diplomat. (2021, March 10). TSMC's Arizona fab: A new front in the U.S.-China tech war. Retrieved from https://thediplomat.com/2021/03/tsms-arizona-fab-a-new-front-in-the-us-china-tech-war/
- The theft of TSMC's 2nm trade secrets could potentially impact various industries, including finance, as any advancements in semiconductor technology often lead to investments in new equipment and infrastructure.
- The energy industry, in particular, might be affected, given the increasing reliance on semiconductors for power management systems and smart grids.
- With TSMC's advanced 2nm technology set to be achieved by 2025, the aerospace industry is likely to be a significant beneficiary, given the crucial role of semiconductors in aerospace applications.
- The theft of TSMC's trade secrets has raised concerns about national security in the realm of policy and legislation, prompting discussions on the need for stronger regulations and penalties to deter such acts.
- As the investigation into the TSMC trade secret leak unfolds, the personal-finance sector could see changes in investment strategies, as investors reassess their risk tolerance with regards to companies in the manufacturing industry.
- Wealth-management firms might also need to adapt their strategies to mitigate risks related to industrial espionage incidences such as this one, given their clients' dependence on technology for business operations.
- In the realm of general news, this incident highlights the increasing emphasis on protecting intellectual property and preventing technology migration to foreign entities, especially in the context of ongoing conflicts like war and conflicts.
- Sports and sports-betting industries might seem unrelated, but the potential impact on the manufacturing industry (given the extensive use of semiconductors in sport-related gadgets) could present new opportunities or challenges for both markets.
- The potential ramifications of the TSMC trade secret leak extend beyond industrial espionage, as crimes and justice systems may need to adapt to handle cases that involve complex technology and cross-border collaboration.
