Apple chipmaker TSMC fires employees for stealing trade secrets on iPhone 18

TSMC

TSMC, Apple’s primary chipmaker, has found itself at the centre of a major trade secret theft attempt. The company revealed that several former employees tried to steal proprietary information about its highly advanced 2-nanometer chip process—technology set to power Apple’s A20 chips in next year’s iPhone 18 lineup.

According to a report by Nikkei Asia, the plot was uncovered during routine monitoring, when TSMC detected “unusual access patterns” linked to sensitive development data. Swift internal investigations confirmed an attempt to leak confidential information. The company promptly fired the individuals involved and has initiated legal proceedings. Taiwan’s prosecutors are also investigating, with the possibility of criminal charges looming large.

While TSMC didn’t disclose specifics of the stolen data, sources believe the breach targeted core details of the 2nm fabrication process—technology critical not only for TSMC’s competitive edge but also for national security. The Taiwanese government is expected to take a hardline stance on prosecuting such incidents, given the geopolitical importance of semiconductor leadership.

Apple is anticipated to be the first to benefit from TSMC’s 2nm node, with all iPhone 18 models (not just Pro variants) likely to adopt the new A20 chip, according to analyst Ming-Chi Kuo.

The alleged trade secret theft doesn’t appear to involve Apple-specific designs, but rather TSMC’s overall 2nm process technology. Nonetheless, the breach underscores the growing risks surrounding intellectual property theft in the fiercely competitive chip industry.

TSMC stated it will pursue prosecution to the fullest extent, making it clear that safeguarding its technological crown jewels is non-negotiable, as per the report.