A former TSMC employee could spend the next 14 years behind bars after prosecutors in Taiwan indicted three people for stealing trade secrets from the world’s largest semiconductor manufacturer. The prison case centers around a former employee surnamed Chen, who allegedly conspired to steal critical manufacturing secrets that could impact future iPhone 18 chip production.
14-year prison term over chip trade secret theft
Chen worked at TSMC before joining Tokyo Electron, a key equipment supplier for the chipmaker. Prosecutors claim he reached out to former colleagues still working at TSMC, seeking help to obtain trade secrets. The timing couldn’t be worse as TSMC prepares to manufacture Apple’s next-generation processors.
This theft threatens more than just corporate secrets. TSMC builds chips for many big names in the tech space. We’re talking about Apple, Qualcomm, NVIDIA, AMD, and MediaTek, just to name a few. The company is racing to become the first manufacturer of 2nm chipsets, and these chipsets are expected to debut in 2026 with devices like the Apple iPhone 18 series.
According to Nikkei Asia, TSMC discovered the breach during routine monitoring. The company immediately launched an internal investigation and took strict disciplinary action against employees involved in unauthorized activities. It also quickly initiated legal proceedings.
This highlights growing security concerns in the chip industry. As manufacturing becomes more complex and valuable, so does the danger of industrial espionage. Let’s not forget that TSMC has a near-monopoly in the semiconductor industry. Samsung comes close, but TSMC is still very much the preferred choice. Chen now faces charges for violating trade secrets and national security laws.
Why TSMC’s 2nm process is a big deal, not just for Apple’s iPhone 18
The stakes are pretty high when it comes to TSMC’s 2nm manufacturing process. This breakthrough technology promises to deliver improved performance and efficiency gains. It has the potential to revolutionize everything from smartphones to AI. This is because the smaller the process, the more transistors can be fit onto it. This boosts both performance and efficiency.
A good example would be to look at the chipsets used in the past. For instance, Apple’s latest A18 Pro chipset is probably roughly the same size as the A4 from 2010, but now boasts thousands of times more transistors. TSMC’s successful delivery of these chips could very well help the company further cement its place in history.
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