TSMC fires staff, launches legal action over suspected 2-nm data leak

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a linchpin of global electronics supply chains, has dismissed several employees and launched legal proceedings over suspected breaches of internal rules involving access to sensitive chipmaking information.

The company confirmed to Nikkei Asia that it had “detected unauthorised activities during routine monitoring, leading to the discovery of potential trade secret leaks”.

The alleged violations involve attempts by former staff to obtain proprietary details on TSMC’s 2-nanometre (nm) chip development and production, the report said.

2-nm process: A breakthrough in semiconductor technology

The 2-nm process is the most advanced semiconductor manufacturing technology currently under development and is expected to enter mass production this year. The 2-nm process is also considered to be highly complex and capital-intensive. TSMC, Samsung Electronics, Intel, and Japan’s Rapidus are among the few companies pursuing the technology.

TSMC did not specify the technology involved or the intended use of the information. Investigations are underway to determine the scope of the alleged leak, whether the data was transferred outside the company, and if others were involved. The case is now under judicial review in Taiwan.

Global semiconductor leader

Headquartered in Taiwan, TSMC manufactures chips that power most modern devices — from smartphones and laptops to servers, automobiles and industrial systems. Its clients include Apple, Nvidia, Qualcomm, Amazon and Google. Unlike Samsung and Intel, TSMC does not design or market its own chips, instead acting as the manufacturing partner for hundreds of technology firms.

With more than three times the market share of its nearest competitor, Samsung, TSMC dominates the contract semiconductor manufacturing sector. In 2024, it produced nearly 12,000 chip designs for over 500 customers, with an annual capacity of about 17 million 12-inch equivalent wafers. Its facilities span Taiwan, the United States, Japan, China and Europe, including a new fab under construction in Germany.

TSMC security breach: Legal actions

Under Taiwan’s National Security Act, amended in 2022, trade secrets related to 'National Core Critical Technologies' are protected from unauthorised reproduction, use, or disclosure. Violations can lead to criminal charges.

TSMC reports $13 billion in net profit

For the quarter that ended June 30, 2025, consolidated revenue for the chipmaker rose 38.6 per cent year-on-year to NT$933.79 billion ($30.07 billion), while net profit jumped 60.7 per cent to NT$398.27 billion ($13.5 billion). Advanced process technologies, such as 7-nanometer and smaller, made up 74 per cent of wafer revenue, with 3-nanometer and 5-nanometer nodes contributing 24 per cent and 36 per cent respectively.

The company expects third-quarter revenue between $31.8 billion and $33 billion, driven by strong demand from artificial intelligence and high-performance computing customers.