TSMC employees arrested for stealing chip technology used in Apple’s most powerful iPhones, may face 12 years in jail

tsmc

In a major case of tech theft, employees of TSMC, the company that makes chips for Apple’s most advanced iPhones, have been arrested in Taiwan. They are accused of stealing secret information about TSMC’s next-generation chip technology and could face up to 12 years in prison if found guilty.

TSMC, short for Taiwan Semiconductor Manufacturing Company, is one of the world’s most important chipmakers. It builds the small but powerful processors that run in Apple’s latest iPhones. The stolen information is related to the company’s cutting-edge 2nm chip, a technology that promises to make phones faster and more energy efficient.

This is the first case to be investigated under Taiwan’s updated national security law, which now includes strong protection for the country’s most valuable technologies. If someone tries to leak or steal information about key tech, like advanced chip designs, they can face serious punishment, including jail time and a fine of over $3 million.

The arrests came after TSMC’s internal systems noticed suspicious activity. The company has a strict policy when it comes to protecting its inventions and has taken legal action in the past against workers who moved to rival companies.

Prosecutors also searched the offices of Tokyo Electron, a Japanese company that makes tools for chipmaking, as part of the investigation. It’s still unclear how that company is connected to the case.

The race to build better and smaller chips is intense. These chips are used in everything from smartphones and laptops to AI systems and supercomputers. Because developing them takes years and costs billions, stealing this kind of technology can give competitors a big unfair advantage.

This incident highlights how valuable and vulnerable high-tech designs have become.