TSMC Takes Action After Suspected Trade Secret Leak; Three Arrested

Aug 5, 2025

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has discovered potential leaks of its trade secrets involving some of its employees. The company reported finding 'unauthorized activities' related to sensitive information about its advanced computer chips.

TSMC has taken disciplinary measures against the employees involved and has started legal proceedings. Authorities in Taiwan have arrested three individuals in connection with the suspected theft.

The company stated that the leaked information could pose a risk to its technological leadership. News of the incident led to a drop in TSMC's stock price.

What are trade secrets, and why are they important?

Trade secrets are confidential business information that gives a company a competitive edge. Protecting them helps companies maintain their leadership and profitability.

How did TSMC respond to the suspected leak?

TSMC disciplined the employees involved, began legal action, and is working with authorities, which led to three arrests.

Did this news affect TSMC's stock price?

Yes, TSMC's stock price fell following reports of the suspected trade secret theft.

Sources
TSMC cracks down on trade secret breach, initiates legal action
Reuters
Taiwan Semiconductor Manufacturing Co. has launched legal proceedings and taken disciplinary action against employees involved in potential trade secret leaks, it said in an emailed statement on Tuesday.
World's largest chipmaker TSMC says it has discovered potential trade secret lea...
CNBC
Taiwan Semiconductor Manufacturing Co. said it had detected "unauthorized activities" that lead to the discovery of potential trade secret leaks. TSMC said it has taken action against the personnel involved and launched legal proceedings.
Taiwan Arrests Three Over Suspected Theft of TSMC's Trade Secrets
WSJ
The chip maker said it has taken disciplinary action against employees involved in a potential leak of sensitive information that could undermine its technological leadership.
Chipmaker TSMC uncovers potential trade secrets theft, three arrested in Taiwan
New York Post
Taiwan Semiconductor Manufacturing Company said Tuesday it had discovered “unauthorized activities” of employees suspecting of stealing trade secrets related to its advanced computer chips.
TSMC Stock Slips On Suspected Trade Secrets Theft
Investors Business Daily
TSMC stock falls on news of suspected trade secrets theft at the semiconductor manufacturing powerhouse.
Taiwan Investigates TSMC Employees Over Possible Trade Secret Theft
NYTimes
Taiwan government says it has detained three employees on suspicion they obtained the Taiwanese chip giant's “core technology trade secrets.”
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