A recent incident involving Taiwan Semiconductor Manufacturing Company (TSMC) has led to the firing of several employees suspected of stealing secrets tied to their advanced 2 nm process technology. Taiwan’s Supreme Prosecutors Office has stepped in to investigate due to the potential implications for national security.

According to news from the Central News Agency in Taipei, both a former and a current employee have been arrested alongside three others. TSMC initiated the investigation when it became aware of an employee having unusual access to confidential files. Following an internal review revealing strong evidence that key national trade secrets were at risk, TSMC opted to pursue legal action against the implicated individuals.

The Intellectual Property Division of the Supreme Prosecutors Office has now handled the case under the National Security Act, where those convicted could face up to 12 years in prison and fines reaching $3.3 million.

For TSMC, which significantly contributes to Taiwan’s economy (accounting for approximately 8% of the nation’s GDP and 12% of exports), maintaining the integrity of its technology is crucial. As TSMC prepares to roll out its new N2 process node, the response from authorities underscores the importance of safeguarding trade secrets in a competitive market.