Espionage Scandal Rocks TSMC as U.S. Operations Face Profit Collapse

TSMC US8740391003

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, finds itself navigating dual crises as a major corporate espionage investigation unfolds alongside severe profitability challenges at its American facilities.

Taiwanese prosecutors have launched a formal investigation into former TSMC vice president Lo Wei-jen, who stands accused of removing over 80 boxes containing highly sensitive technical documents after 21 years with the company. The materials allegedly included proprietary information about TSMC’s groundbreaking 2-nanometer, A16, and A14 process technologies. Adding to concerns, Lo unexpectedly joined U.S. competitor Intel in late October, raising suspicions that critical semiconductor secrets may have been transferred to a direct rival.