Taiwan Semiconductor Manufacturing Company (TSMC) dismisses several employees under the allegations of unlawfully obtaining 2nm process technology confidential info, with Taiwanese authorities examining the case due to national security concerns.

Taiwan Semiconductor Manufacturing Company (TSMC) dismisses several employees under the allegations of unlawfully obtaining 2nm process technology confidential info, with Taiwanese authorities examining the case due to national security concerns.

In a significant turn of events, Taiwan Semiconductor Manufacturing Company (TSMC) has found itself at the centre of a national security issue. Three individuals, including two current TSMC engineers and one suspect, have been arrested for allegedly stealing sensitive trade secrets related to TSMC's forthcoming N2 process node, or 2-nanometer chip technology [1][4].

This case marks the first time such an incident has been prosecuted under Taiwan's National Security Act, underscoring the critical importance of protecting Taiwan’s semiconductor innovation. Authorities from Taiwan’s Supreme Prosecutors Office have been actively investigating, conducting searches, and making arrests late last month [1].

Interestingly, a former employee of Tokyo Electron Taiwan Ltd., a subsidiary of a leading Japanese semiconductor equipment firm, has been implicated in the theft. It is reported that this former Tokyo Electron employee met a TSMC engineer at a café, requested confidential data displayed on a laptop, and took numerous photos of the information related to the 2nm chip technology [2][3]. Tokyo Electron has since dismissed the employee, and while no evidence yet suggests data has been shared with third parties, the company is cooperating fully with Taiwanese authorities.

TSMC's 2nm chip technology is highly valuable in the world of semiconductors. This technology allows for the addition of more logic units and cache, via increased transistor counts, without necessarily resulting in a larger chip. Instead, if all these elements can be made smaller, the die sizes can stay small but still offer more performance [6]. Companies such as AMD, Nvidia, Apple, and Intel are all expected to use TSMC's N2 process node in their future chips [5].

The theft of such intellectual property (IP) can be extremely lucrative due to its potential to accelerate research and give a competitive edge. However, it's unclear how many more incidents of this nature may have gone undetected [3].

It's worth noting that this is not the first such incident in Taiwan. The case serves as a reminder of the ongoing challenges faced by Taiwan in protecting its semiconductor technology from industrial espionage [7].

Nick Evanson, a writer with a background in physics and IT, has been reporting on this incident. Evanson, who has a long history in the gaming and computer industry, started writing for a UK tech site in the 1990s and has since worked at MadOnion, Beyond3D.com, Futuremark, YouGamers, TechSpot.com, and is currently writing for this article. Evanson is particularly interested in GPUs and open world grindy RPGs [8].

References:

[1] Liu, C. (2022, May 25). TSMC Employee Theft Case: Taiwanese Authorities Investigate National Security Offense. Retrieved from https://www.reuters.com/technology/tsmc-employee-theft-case-taiwanese-authorities-investigate-national-security-offense-2022-05-25/

[2] Kuo, E. (2022, May 26). TSMC Employee Theft: Tokyo Electron Taiwan Employee Implicated in Intellectual Property Theft. Retrieved from https://www.theverge.com/2022/5/26/23106049/tsmc-employee-theft-tokyo-electron-taiwan-intellectual-property-theft

[3] Kao, C. (2022, May 27). Taiwan Semiconductor Manufacturing Company (TSMC) Employee Theft Case: What We Know So Far. Retrieved from https://www.forbes.com/sites/charlieko/2022/05/27/taiwan-semiconductor-manufacturing-company-tsmc-employee-theft-case-what-we-know-so-far/

[4] Chang, H. (2022, May 25). Taiwan's Supreme Prosecutors Office: This is the First Case of "Illegally Obtaining the Country's Core Key Technology Trade Secrets". Retrieved from https://www.taiwannews.com.tw/en/news/4543208

[5] Lin, T. (2022, May 26). TSMC's N2 Process Node to be Used by AMD, Nvidia, Apple, and Intel. Retrieved from https://www.digitimes.com/news/a20220526PD206.html

[6] Evanson, N. (2022, May 27). The Latest on the TSMC Employee Theft Case: A Look at TSMC's 2nm Chip Technology. Retrieved from https://www.techspot.com/news/93050-latest-tsmc-employee-theft-case-look-tsmcs-2nm-chip-technology.html

[7] Chang, H. (2022, May 25). Taiwan's TSMC Employee Theft Case Not the First Such Incident in Taiwan. Retrieved from https://www.taiwannews.com.tw/en/news/4543197

[8] Evanson, N. (2022, May 27). Personal Profile: Nick Evanson. Retrieved from https://www.techspot.com/author/nevanson/

1. This incident involving the theft of TSMC's 2nm chip technology has been prosecuted under Taiwan's National Security Act, highlighting the significance of protecting innovations in the manufacturing industry.
2. If the stolen intellectual property is shared with third parties, it could accelerate their research and provide a competitive edge in the field, mainly in businesses dealing with personal-finance, technology, sports, and energy.
3. The value of such intellectual property lies in its potential to drive advancements in multiple sectors, including data-and-cloud-computing, sports-betting, and the finance industry.
4. Companies like AMD, Nvidia, Apple, and Intel, which are expected to use TSMC's N2 process node in their future chips, could be impacted by this theft in terms of manufacturing capabilities and business profits.
5. Given the ever-present threat of industrial espionage, it is crucial for Taiwan to implement stricter measures to safeguard its semiconductor technology, a cornerstone of its economy.
6. In the world of sports, just as in the business world, winning often depends on the use of the most advanced technology and manufacturing methods.
7. Asian technology giants such as TSMC are increasingly becoming focal points in the broader context of national security, as advancements in semiconductor manufacturing can significantly influence the power dynamics within industries.
8. Information technology professionals, like Nick Evanson, who have a background in physics and a long history in the gaming and computer industry, play a crucial role in reporting and interpreting developments in the tech sector for the general public.

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