Taiwan arrests 3 over suspected theft of chip trade secrets

Taiwan has arrested three employees of Taiwan Semiconductor Manufacturing Company (TSMC) for allegedly stealing trade secrets related to the company's advanced 2-nanometer chip technology.

TSMC discovered unusual access to confidential files, raising the possibility that three of its employees illegally obtained core technology, Focus Taiwan reported on Tuesday, citing local prosecutors.

The firm reported the case to prosecutors, who conducted searches and arrests from July 25 to 28.

Taiwan's National Security Act makes it illegal to disclose trade secrets involving national core technologies to foreign or hostile entities without authorization.

The incident marked the first instance of unauthorized access to such technology, and prosecutors are looking into the motives and potential future leaks.

The development came as US President Donald Trump suggested on Tuesday that TSMC could invest $300 billion in Arizona, nearly doubling the total investment the company had previously announced in America.

"Taiwan is coming over and spending 300 billion dollars in Arizona building the biggest plant in the world for chips and semiconductors," Trump said in an interview on CNBC.

The company, however, has not confirmed this claim, and its shares fell on Wednesday.

TSMC announced earlier in March that it would "expand its investment in the United States to $165 billion to power the future of AI," despite ongoing tariff talks between Taipei and Washington, DC.