TLDRs;
Contents
- TSMC investigates potential leak of 2nm chip secrets, citing unauthorized internal activity.
- Legal action and internal disciplinary measures already underway at TSMC.
- The leak surfaces as TSMC races rivals Intel and Samsung in 2nm chip development.
- AI chip demand soars, pushing TSMC to a $1 trillion market cap amid rising security risks.
Taiwan Semiconductor Manufacturing Company (TSMC) has initiated an internal probe and legal proceedings after detecting a suspected leak of trade secrets related to its next-generation AI chips.
The semiconductor giant said it discovered unauthorized activity during routine system monitoring, prompting swift action against multiple employees.
The breach is under formal judicial review, and while TSMC declined to share further specifics, the company confirmed it had already imposed disciplinary measures and referred the matter to authorities.
“TSMC’s internal controls and monitoring systems enabled early detection and rapid containment,” the company stated, adding that safeguarding intellectual property is critical to maintaining its leadership in chip manufacturing.
2nm Leak Tied Pattern of Chip Espionage
The suspected breach is part of a broader trend of industrial espionage targeting the semiconductor industry’s most advanced technologies. TSMC’s 2nm process, central to the case, is one of the most cutting-edge manufacturing techniques currently in development.
Experts suggest this follows a familiar pattern. In recent years, companies like SMIC, Fujian Jinhua, and even employees of global chemical suppliers have been involved in high-profile IP theft cases, often with geopolitical implications.
In TSMC’s case, its 2nm node is scheduled for mass production in the second half of 2025 and is expected to power the next wave of AI, mobile, and computing devices. Apple and AMD are already lined up to use the technology.
Fierce Global Race for AI Chip Supremacy
The timing of the suspected leak raises red flags. TSMC’s 2nm tech is seen as a crown jewel in the intensifying battle between global chipmakers. Intel and Samsung are both developing rival 2nm and 18A processes and have invested tens of billions to close the gap with TSMC.
With over 64.9% market share in the foundry business, TSMC remains the undisputed leader. The company’s new Kaohsiung 2nm fab represents an investment of over NT$1.5 trillion (approximately $46 billion USD).
Any compromise of this technology could jeopardize future revenue streams and strategic partnerships.
AI Boom Powers TSMC to $1 Trillion Milestone
Despite the breach concerns, TSMC continues to ride a massive AI demand wave. As of July 2025, the company has hit a $1 trillion valuation, joining the ranks of tech titans like Microsoft and Apple.
TSMC’s stock has surged nearly 50% since April, driven by increased revenue forecasts and robust AI chip demand from partners like Nvidia and Apple. Goldman Sachs and JPMorgan analysts expect continued margin growth and price hikes on wafer services as AI adoption accelerates globally.
The security breach underscores the rising risks that accompany this growth, placing even more pressure on firms like TSMC to safeguard their most valuable assets.
