Taiwan authorities said they had arrested three people on suspicion of stealing trade secrets from Taiwan Semiconductor Manufacturing Company, the world’s largest chip foundry.
Taiwan Semiconductor Manufacturing Company, the world’s largest supplier of semiconductor chips, said it had detected "unauthorized activities"
CFOTO/Future Publishing via Getty Images
Taiwan authorities said they had arrested three people on suspicion of stealing trade secrets from Taiwan Semiconductor Manufacturing Company, the world’s largest chip foundry.
The Taiwan High Prosecutors Office announced the arrests Tuesday, after an investigation last month that was sparked when TSMC $TSM detected suspicious access to company files, it said.
TSMC said it has taken disciplinary action against the individuals, some of them former employees, after it detected “unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks," reported Reuters.
As the world’s largest supplier of semiconductor chips, TSMC is a lynchpin of the global tech industry, providing its products to companies like Nvidia $NVDA and Apple $AAPL. The investigation comes as the global race to develop artificial intelligence heats up, requiring ever more advanced chips.
Rising tensions between the U.S., China, and other countries has thrust the race into the limelight, making the intellectual property of companies like TSMC more coveted than ever. The firm has more than 200,000 trade secrets recorded internally, it has said.
Prosecutors said they had searched the suspects’ homes. They did not identify the suspects, except for one person’s surname, Chen.
TSMC said it has taken “strict” disciplinary action against those involved. “TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the company said, per CNBC.
“Such violations are dealt with strictly and pursued to the fullest extent of the law. We remain committed to safeguarding our core competitiveness and the shared interests of all our employees.”
TSMC said the legal case is now under judicial review and so it could not give further details.
Nikkei Asia reported that the breach involved former employees who were suspected of trying to get hold of critical information on TSMC’s 2-nanometer chip technology, which is the most advanced tech in the industry in terms for both density and energy efficiency.
It said there were no details on the motives of the suspects, or whether any information had actually been passed on. Investigations continue into the scope of the leak and whether other people were involved, the Nikkei reported.
TSMC didn't immediately respond to Quartz's request for comment.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.