Two former TSMC employees have been arrested alongside a third individual, accused of stealing proprietary technology from the Taiwanese chipmaker.

According to a report from Nikkei Asia, which first reported the news, the “unauthorized activity” was detected as part of routine monitoring, “leading to the discovery of potential trade secret leaks.”

The FT separately reported that investigators have also searched the Taiwanese premises of Tokyo Electron, a Japanese chip toolmaker. The suspects include both current and former engineers at the company – the current employee was fired when the leak was uncovered, the FT said.

In a statement to Nikkei Asia, TSMC said it “maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests. Such violations are dealt with strictly and pursued to the fullest extent of the law.”

TSMC also said it took “strict disciplinary actions against the personnel involved and has initiated legal proceedings.” The company declined to specify which technology was the subject of the leak, and the news outlet said investigations are ongoing into where the information was leaked, the scope of the leak, and whether any additional parties were involved in the alleged crime.

The three suspects are thought to have violated Taiwan’s National Security Act and have been detained at the request of the Intellectual Property and Commercial Court. The FT said the arrests are the first to take place under the national security law since it was bolstered by the Taiwanese government in 2022 to include provisions for the protection of key technologies.