Taiwan Semiconductor Manufacturing Co. said it has dismissed several employees after internal monitoring detected “unauthorized activities” involving proprietary information on its next-generation 2-nanometer chip process. The world’s largest contract chipmaker has filed civil complaints and vowed to pursue the case “to the fullest extent of the law.” Taiwan’s High Prosecutors Office later confirmed that three individuals—including current and former TSMC staff—were taken into custody on suspicion of stealing trade secrets, the first case to proceed under amendments to the island’s National Security Act that elevate advanced semiconductor technologies to the level of national-security assets. Investigators also searched facilities of Japanese chip-equipment supplier Tokyo Electron, according to court filings. TSMC said the breach was caught early and had not affected development of the 2-nanometer node, which is scheduled for mass production in the second half of 2025 and underpins future chips for major customers such as Apple and Nvidia. The episode highlights escalating efforts by authorities and industry leaders to safeguard intellectual property as the global race for cutting-edge semiconductors intensifies.