TSMC Faces Internal Security Breach as AI Chip Tech Leaks Surface

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the AI Stocks Gaining Attention on Wall StreetOn August 5, Reuters reported that authorities have detained three people in Taiwan for allegedly stealing technology trade secrets from Taiwan Semiconductor Manufacturing Co.

The individuals were detained late last month after TSMC reported findings from an internal investigation which had shown that former and current employees had illegally obtained information from them.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

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According to the prosecutor’s office, another two people have been released on bail, while one more has been released.

Meanwhile,the three individuals detained include one former employee and two current staff members.

TSMC announced that it has launched legal proceedings and taken disciplinary action against employees who are involved in potential trade secret leaks. The incident has come to light during routine monitoring through the company’s “comprehensive and robust monitoring mechanisms.”

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.

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Disclosure: None.