09:37 AM EDT, 08/05/2025 (MT Newswires) -- (Updates with Taiwan Semiconductor comments in the last three paragraphs.)

Two former employees of Taiwan Semiconductor Manufacturing ( TSM ) and a third individual have been arrested for allegedly unlawfully obtaining trade secrets from the company, several media outlets reported Tuesday, citing Taiwanese prosecutors.

Former company employees are suspected of having attempted to gain proprietary data on 2-nanometer chip development and production while they were still employed, Nikkei Asia reported.

An internal investigation conducted by the company found that the suspected individuals were part of "potential trade secret leaks," according to the Financial Times.

"TSMC has taken strict disciplinary actions against the personnel involved and has initiated legal proceedings," the company said in a statement to MT Newswires.

In response to the allegations against its former employees, Taiwan Semiconductor said it "maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests."

The chipmaker also said it is unable to provide more details on the case since it is currently under judicial review.

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