TSMC Unlikely to Be Affected by Trade Secrets Leak: Pegatron Chair

Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) is unlikely to be impacted if some of its technical secrets get leaked, said Tung Tzu-hsien, chairman of Taiwanese electronics manufacturer Pegatron Corp., on Wednesday. Tung made this comment following reports of a former TSMC executive allegedly taking confidential data before retiring.

According to Focus Taiwan, former TSMC executive Lo Wei-jen allegedly took confidential data of the company's most advanced 2 nanometer, A16, and A14 manufacturing processes before retiring in July. Reports suggest that Lo joined Intel in October. Despite this, Tung emphasized that Taiwan's semiconductor sector remains "globally competitive" and is resilient against "one or two individual incidents."

Tung highlighted that TSMC's competitive advantage lies in its adaptable manufacturing system, which caters to numerous clients while maintaining high yields. Even if the manufacturing data were compromised, he noted that such information could merely "serve as a reference at best" due to the different equipment and production-line configurations used by other companies, making exact replication "nearly impossible."

He further mentioned that TSMC's market leadership in advanced processes has persisted even as Taiwanese engineers and former TSMC managers have contributed to building China's semiconductor supply chain in recent years.

Meanwhile, the Taiwan High Prosecutors Office's Intellectual Property Branch has launched an investigation into Lo's actions. Local media reports indicate that Lo allegedly instructed subordinates to brief him on advanced technologies and took photocopies of confidential documents prior to his departure. TSMC is reportedly gathering evidence for potential "action" against Lo. However, prosecutors have released limited details about the case as of now.