Fired! Apple chip maker TSMC sack employees for leaking iPhone 18 processor secrets

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Updated on: Aug 05, 2025 07:23 pm IST

TSMC has fired multiple employees for attempting to leak its 2nm chip technology, which will be used in Apple’s A20 chips for the iPhone 18.

TSMC, the world’s most advanced chipmaker and Apple’s key supplier, has fired several employees for attempting to steal confidential information related to its upcoming 2-nanometre chip technology. This next-generation chip process is expected to power Apple’s A20 processor in the iPhone 18 series, set to launch next year.

TSMC's 2nm chip tech, set to power iPhone 18, was the target of a failed trade secret theft. (HT Tech)
TSMC’s 2nm chip tech, set to power iPhone 18, was the target of a failed trade secret theft. (HT Tech)

The breach was discovered through internal monitoring systems that flagged unusual access activity to highly sensitive development data, according to a report by Nikkei Asia. An internal investigation confirmed deliberate attempts to exfiltrate trade secrets. The implicated employees were immediately dismissed, and legal action has been initiated. Taiwan’s prosecutors are now involved, and criminal charges are being considered.

While TSMC has not revealed the precise nature of the stolen information, sources suggest the attempt focused on the core elements of its 2nm chip manufacturing process. This technology represents a major leap in efficiency and performance, not just for TSMC’s global leadership but also for Taiwan’s strategic position in the semiconductor race.

Analyst Ming-Chi Kuo believes Apple will be among the first to use the new 2nm node, with the A20 chip likely to feature in all iPhone 18 models. That would mark a significant upgrade across the board, not just for the Pro variants.

The leak is not believed to involve Apple’s proprietary designs but targets TSMC’s overall process innovations, which form the foundation for future Apple silicon. Still, the incident highlights the increasing threats of IP theft in the semiconductor industry, where competition is intense and stakes are high.

TSMC has stated it will push for maximum penalties against those involved. Protecting its intellectual property, the company said, is critical to its continued dominance and national security interests.

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