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Taiwanese prosecutors detain three over alleged TSMC chip secret theft

Taiwanese prosecutors have detained three individuals — two current TSMC employees and one former staff member surnamed Chen — over allegations of stealing trade secrets from Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chip foundry. The detentions took place late last month following a TSMC internal investigation that uncovered unauthorized access to company information.

Two additional suspects were released on bail, while another was released without bail. Authorities suspect the detained individuals of violating Taiwan’s national security law, though no detailed identities have been disclosed.

TSMC stated it initiated legal action and disciplinary measures against those involved after routine monitoring detected suspicious activity. The company’s early detection system prompted swift internal inquiries, leading to the identification of personnel linked to the breach. The matter is now under judicial review, preventing further public disclosure from TSMC.

According to Nikkei Asia, the case involves attempts by several former employees to obtain highly sensitive information related to TSMC’s 2-nanometer chip technology — considered the industry’s most advanced in density and energy efficiency. Investigations have not yet determined whether the stolen information was transferred to external parties or the full scope of the leak.

Taiwanese media outlet United Daily News reported that prosecutors also searched offices of Japanese chip equipment supplier Tokyo Electron, though both the company and prosecutors declined comment.

TSMC, a critical supplier to Nvidia, Apple, and Qualcomm, reiterated its zero-tolerance policy on trade secret violations, vowing to prosecute offenders to the fullest extent of the law.

Nvidia CEO Jensen Huang to Meet Former President Trump Ahead of China Visit

Nvidia CEO Jensen Huang is scheduled to meet former U.S. President Donald Trump at the White House on Thursday, a day before Huang’s planned trip to China, according to a source familiar with the matter. The meeting takes place as Nvidia’s market valuation recently surpassed $4 trillion for the first time, underscoring the company’s position as one of Wall Street’s most valuable stocks.

Specific details about the agenda of the discussions have not been disclosed. Bloomberg was the first to report the meeting, while neither Nvidia nor the White House immediately responded to Reuters’ requests for comment.

Huang has previously criticized the export restrictions imposed by the Trump administration in April, which halted Nvidia’s ability to sell its H20 AI chip to China—a product Huang described as a “springboard to global success.” These U.S. export curbs resulted in a $2.5 billion loss in sales for Nvidia in the first quarter, with the company forecasting an $8 billion revenue impact in the second quarter.

Due to these stringent trade restrictions, Huang announced in June that Nvidia would exclude China from its revenue and profit projections going forward.

Huawei Targets AI Chip Sales in Middle East and Southeast Asia Amid U.S. Competition

Huawei Technologies is seeking to expand its AI chip footprint by attempting to export small quantities of its Ascend 910B AI chips to markets in the Middle East and Southeast Asia, according to a Bloomberg News report on Thursday. The Chinese telecommunications giant is reaching out to potential customers in the United Arab Emirates, Saudi Arabia, and Thailand as it aims to challenge the dominance of U.S. chip leader Nvidia in these regions.

Sources familiar with the matter told Bloomberg that Huawei is offering the older-generation Ascend 910B chips in the low thousands, although no deals have been finalized so far. Interest from parties in the UAE appears limited, while the status of discussions in Thailand remains unclear. Neither the Thai government nor Saudi Arabia’s media office responded to requests for comment, and Huawei did not immediately reply to Reuters’ inquiry.

In addition to the Ascend 910B, Huawei is promoting CloudMatrix 384, a China-based AI system powered by more advanced chips. However, due to supply constraints, the company is currently unable to export this system. The Middle East is becoming a hot market for AI chips, with several U.S. firms such as Nvidia announcing significant deals. Earlier this year, former U.S. President Donald Trump secured $600 billion in commitments for U.S. companies from Saudi Arabia during a regional tour.

Huawei is also focusing on selling its more advanced AI chip, the 910C, to Chinese customers who face restrictions accessing top-tier American chip technology. U.S. administrations have imposed export controls to limit China’s access to advanced semiconductor technologies, citing national security concerns related to military applications.

An Nvidia spokesperson noted that “With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei,” highlighting the competitive dynamics shaped by these restrictions.