Taiwan Semiconductor Manufacturing Company headquarters in Hsinchu, Taiwan.
Relevant Background TSMC trade secrets
Taiwan Semiconductor Manufacturing Company is the world’s largest semiconductor manufacturing company, producing chips for major tech companies such as Apple, Nvidia, Qualcomm and AMD. But TSMC’s role in the global tech supply chain is extremely important as it makes more than 90% of the world’s advanced chips. And the company’s latest 2-nanometer technology has the potential to revolutionize AI mobile devices and high-performance computing. But for this reason, the protection of TSMC’s intellectual property and trade secrets is extremely important not only for the company but also for the global tech ecosystem. Also, TSMC has recently established its Trade Secret Sustainable Intelligent Management Center. But which is an innovative system designed to protect and manage valuable trade secrets. The purpose of this system is to ensure the protection of trade secrets not only within the company.
TSMC’s Intellectual Property Defense Strategy
TSMC has developed a comprehensive strategy for managing trade secrets that is based on four main pillars. Intellectual Property Strategy Competitive Advantage Innovative Culture and Sustainable Operations The vision is in line with the company’s global expansion and development efforts and aims to continuously improve competitive advantage and realize sustainable innovations. Intellectual Property Strategy TSMC is committed to protecting intellectual property and considers it the centerpiece of the company’s strategy. Competitive Advantage Effective management of trade secrets helps the company maintain competitive advantage. Innovative Culture The company encourages innovation among its employees and develops a culture where creativity is rewarded.
The Evolution of Trade Secrets Management
TSMC launched its trade secrets registration system in 2013, which has systematically recorded more than 340,000 cases of employee innovations. In 2023, the company introduced Trade Secret Intelligent Management Version 2.0 called the Innovation Talent Scouting Online Merge Offline Service (ITS OMO). The service aims to develop more potential talents and further encourage innovations. But in 2024, TSMC introduced four new systems namely Intelligent Trade Secret Monitoring and Matching System, Trade Secret Registration Innovation Index Analytics System, Trade Secret Registration Intelligent Reminder System and Trade Secret Intelligent Management App. By synergistically integrating these with seven existing systems, TSMC established the Trade Secret Sustainable Intelligent Management Center.
The Trade Secret Sustainable Intelligent Management Center focuses on six main services.
Intelligent Registration Integration, which aims to automate and streamline the process of registering trade secrets. Intelligent Abuse Prevention and Monitoring. The system uses advanced monitoring mechanisms to detect unauthorized access and potential leaks. Intelligent automated services and these services Includes automated reminders and notifications that help employees register and comply timely. Artificial Intelligence (AI) is used to analyze innovation patterns and identify potential inventors. Green Trade Secrets (Green Trade Secrets) initiative encourages and recognizes innovations related to the environment. Charitable Sharing and Public Benefits (Public Benefits) where TSMC charitably shares its trade secrets management knowledge and experience with suppliers and other companies.
Self-Evaluation Metrics TSMC trade secrets
TSMC has established self-evaluation metrics that categorize into three main indicators: synergy, optimization, and sustainability. These 15 metrics help companies evaluate their progress and identify and adopt additional resources to enhance their trade secrets management. TSMC aims to facilitate the adoption of these metrics by three companies each year. The mentorship also helps inventors adopt diverse approaches and broaden the company’s impact of their cases. The team launched the ITS OMO service in June 2023 and successfully piloted it in Fab 12B, Fab 15A, and Fab 15B, where six Golden Coaches mentored eighteen prospective inventors.
Innovation Talent Scouting ITS OMO Service
TSMC’s Innovation Talent Scouting Online Merge Offline ITS OMO service is a unique approach to develop innovative talent. The service uses an artificial intelligence talent scouting system that analyzes and evaluates two main indicators: innovation of registered cases and inventor’s innovation based on the characteristics of cases registered by employees. This improves the innovative potential of the company.ntial departments and prospective inventors are identified who have not yet won a golden trade secret award. These prospective inventors also receive one-on-one mentorship from Golden Coaches – colleagues who have won more than two Golden Trade Secret Awards.
Green Trade Secrets Award
TSMC established the Green Trade Secrets Award in 2021 to encourage and motivate employees to pursue environmental protection, energy conservation and other ESG-related innovations. The award aims to encourage the innovation and registration of trade secrets related to energy, water and waste management, climate change, and air pollution control and prevention. The initiative builds a solid foundation and strategy for TSMC’s corporate green operations and deepens and broadens the company’s sustainable culture. The Green Trade Secrets Award is a testament to TSMC’s commitment to environmental protection and energy conservation and demonstrates the company’s commitment to achieve sustainability through innovation.
Contribution to Environmental Technologies
TSMC is currently evaluating a talent development initiative targeted at green trade secret registrations to increase contributions to energy conservation and carbon emission reduction. The initiative aims to encourage employees to innovate in green technologies and improve the company’s overall environmental performance. The green trade secret awards and related initiatives are an integral part of TSMC’s broader sustainability goals. The company believes that green manufacturing is the cornerstone of sustainable operations and this initiative demonstrates the company’s commitment to environmental stewardship.
Supply Chain Trade Secret Management Sharing Project
TSMC launched the Supply Chain Trade Secret Management Sharing pro bono service project in 2021. The project aims to promote the development of the supply chain and build more complete intellectual property management capabilities by sharing practical experiences. Under the project, TSMC shares international industrial intellectual property management trends and the value of trade secret management with strategic supply chain partners. The project covers five main topics. As well as defining management strategies that ensure trade secret protection unique competitive advantages, and analyzing industry trends and implementing intelligent automation of registration systems using intelligent automation functions for timely registration and quality enhancement.
Trade Secret Registration System Alumni Association
TSMC initiated the Trade Secret Registration System Alumni Association in June 2022. The association’s members are companies that have implemented or are actively evaluating and planning a TSR system. The association aims to expand the promotion of the TSR system through mutual exchange and experience sharing, and to make trade secrets a driving force for technological innovation and competitive advantage. Following the first meeting of the Alumni Association, five technology companies – including TSMC’s customers suppliers and companies from other industries such as power management biotechnology and audio-visual solutions – contacted TSMC and expressed interest in the system. More and more companies beyond the semiconductor industry are demonstrating interest in the TSR system.
Recent Challenges and Responses of TSMC trade secrets
In August 2025, TSMC detected a potential leak of trade secrets related to its advanced 2-nanometer process technology. The company’s comprehensive and robust monitoring mechanisms identified unauthorized activities early, followed by internal investigations. And legal action was initiated. The Taiwan High Prosecutors Office Intellectual Property Branch charged three former and current TSMC employees Chen Li-ming, Wu Ping-chun, and Ko Yi-ping with stealing trade secrets and violating the National Security Act. Prosecutors sought prison terms of 14 years, nine years, and seven years for them, respectively.
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