TSMC breach: How the 2nm technology secrets could impact the whole industry?

TSMC breach

A major TSMC breach occurred. Insiders caught leaking sensitive 2nm process data to a rival. Uncover the details of this massive leak.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading chipmaker, announced yesterday it has uncovered a significant internal breach involving the theft of trade secrets related to its cutting-edge 2-nanometer (2nm) technology—the same process slated to power Apple’s upcoming iPhone 18 series. The company has fired the employees involved and is pursuing legal action.

According to reports from Asian media outlets IT Home and Nikkei Asia, an internal investigation implicated nine individuals. Three employees involved in the 2nm trial production phase allegedly used mobile phones to photograph and record sensitive data, which was then leaked to employees at Tokyo Electron (TEL).

The alleged involvement of Tokyo Electron, the world’s fourth-largest semiconductor equipment manufacturer, is particularly alarming. TEL is a key shareholder in Rapidus, a Japanese government-backed chipmaker that is a direct competitor to TSMC and has also begun trial production of 2nm chips. This connection suggests a clear case of industrial espionage.

TSMC has responded swiftly and decisively. The company confirmed it has fired the employees directly involved, transferred six other R&D personnel, and is pursuing legal action that could result in criminal charges. In a statement, the company affirmed its “zero-tolerance policy for any behavior that undermines the protection of trade secrets,” promising to pursue the matter “to the end of the law.”

The 2nm process is critical for the next generation of high-performance computing and is set to enter mass production in the second half of this year. Apple, TSMC’s largest client, is expected to be the first to utilize the technology for its A20 chip in the iPhone 18 series. According to analyst Ming-Chi Kuo, the powerful new chip may be featured in all iPhone 18 models, not just the Pro versions.

While the stolen information in this TSMC breach is believed to concern the manufacturing process itself rather than Apple’s proprietary chip designs, the incident raises concerns across the industry. This case of industrial espionage underscores the immense pressure and high stakes in the global semiconductor race. The ensuing legal battle will be closely monitored by the entire technology industry.

IThome