Will TSMC tech leak and Trump’s demands threaten Taiwan’s top chipmaker status?

The unprecedented leak of Taiwan Semiconductor Manufacturing Co’s (TSMC) most advanced technology has raised concern on the island over the potential threat to its global standing in chipmaking.

Adding to the company’s growing headache, pressure is mounting from US demands, including US President Donald Trump’s claim on Tuesday that the firm would invest US$300 billion in the United States in exchange for better tariff terms for Taiwan, according to observers.

The dual blows have intensified worries over Taiwan’s shrinking leverage in global “semiconductor diplomacy” and the vulnerability of its most prized company, whose cutting-edge fabrication strength sits at the heart of global supply chains, national security strategies, and the escalating US-China tech rivalry.

Taiwanese prosecutors on Tuesday confirmed they had arrested six engineers late last month suspected of stealing trade secrets related to TSMC’s two-nanometre (2nm) process – a technology not yet in mass production and widely regarded as the most advanced in the world.

According to the Taiwan High Prosecutors Office, after searching the homes of the six and questioning them, they detained three suspects – two current and one former employee – alleging they accessed sensitive files remotely using a company-issued laptop while working from home.

The former employee, whose surname is Chen, is accused of photographing the confidential documents with his mobile phone while the two others accessed the files.

South China Morning Post