Although the company did not specify which technology was involved, it reportedly confirmed taking “strict disciplinary actions against the personnel involved and has initiated legal proceedings.”
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) has reportedly uncovered that some ex-employees illegally accessed and obtained trade secrets related to its advanced wafer manufacturing technology.
The Taiwanese foundry is a supplier of chips to global semiconductor and consumer electronics companies such as Apple (APPL) and Nvidia (NVDA).
A Nikkei report, citing multiple sources familiar with the matter, stated on Tuesday that several former TSMC employees attempted to gain proprietary information on the 2-nanometer chip development and production while still employed with the company.
When contacted, TSMC reportedly told Nikkei that it recently “detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks.”
TSMC stock has gained nearly 22% this year, as its fundamentals benefited from strong demand for advanced, high-performance chips for artificial intelligence (AI) processes and systems.
Although the company did not specify which technology was involved, it reportedly confirmed taking “strict disciplinary actions against the personnel involved, adding that it has initiated legal proceedings.”
TSMC did not disclose any further information on the development, reasoning that the case was under judicial review.
Nikkei reported that investigators were now examining how the information may have been leaked, the scope of the leak, and whether additional parties were involved in the incident.
TSMC’s most advanced 2-nm technology is yet to enter mass production and is currently being tested. Only Intel, Samsung, and Rapidus are actively developing the technology, given the cost and complexity involved.
The company reported late last month forecast-beating quarterly results and issued upbeat guidance. The most advanced processor node technology currently in production (3 nm) accounted for 24% of the total wafer revenue.
Following the results, Wendell Huang, Senior VP and Chief Financial Officer of TSMC, said the company expects its business to be supported by “strong demand for our leading-edge process technologies.”
On Stocktwits, retail sentiment toward TSMC stock stayed ‘bearish’ (37/100), and the message volume was ‘low’ heading into Tuesday’s market open.
The stock settled Monday’s session up 1.61% at $239, off its intraday high of $248.28 on July 17.
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