Prosecutors say Taiwan Semiconductor Manufacturing Company reported the matter after internal monitoring flagged “potential trade secret leaks”. According to the FT, investigators turned over the offices of Japanese chip tool maker Tokyo Electron in Taiwan.

This is the first time Taiwan’s national security law has been used in a trade secrets case since it was toughened up three years ago to shield vital technology. According to the Taiwan High Prosecutors Office, several suspects and witnesses were questioned between 25 July and 28 July. Three were detained on “serious suspicions of violating national security laws”.

Among those held are a former TSMC engineer and another who was still on the books when the issue surfaced but has since been given the boot. Their dismissal was first reported by Nikkei Asia.

TSMC said: “Thanks to our comprehensive and robust monitoring mechanisms, we were able to identify the issue early.” The company refused to say if the secrets were handed off to anyone, citing the ongoing investigation.

The law now protects “national core technologies” after previous cases saw Chinese outfits allegedly hiring engineers to nab chipmaking knowhow. Manufacturing processes for chips smaller than 14 nanometres are officially off-limits to foreign or hostile hands. TSMC says it expects to begin mass production of 2nm chips later this year.

The company has a history of dragging former employees and rivals through the courts when they get caught with its intellectual property. It has promised “zero tolerance” in this case. “Such violations are pursued to the fullest extent of the law,” it said.

“We will continue to strengthen our internal management and monitoring systems and will work closely with relevant regulatory authorities as necessary to protect our competitive advantage and operational stability.”

Amusingly the Tame Apple Press has claimed, without a shred of evidence, that the technology nicked was the blueprints of the coming Apple's A20 chip for the iPhone 18 lineup. This is based on the fact that TSMC is Apple's only chip supplier and it apparently does not make chips for anyone else which are worth stealing. We would have thought that proprietary tech from Nvidia would have a higher street value than the A20.