TLDRs;
- TSMC extends trade secrets system to US and Europe to secure global supply chain confidentiality.
- The system has logged over 610,000 entries, safeguarding innovations with AI-driven monitoring and encryption.
- Intellectual property theft costs economies 1–3% of GDP annually, with individual cases valued at billions.
- By involving suppliers, TSMC builds an ecosystem-wide security model, reducing risks and boosting competitiveness.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is expanding its trade secrets management system to suppliers and partners in the United States and Europe.
The initiative underscores the company’s commitment to strengthening intellectual property (IP) security across its global network, at a time when knowledge assets are increasingly targeted in high-stakes technology disputes.
The system, which TSMC began developing in 2013, serves as a centralized registry to document confidential technologies and proprietary know-how. To date, it has recorded more than 610,000 entries covering innovations across the company’s operations.
Already adopted by 20 Taiwanese firms, including ASE Technology Holding, TSMC now plans to extend the platform to overseas partners in an effort to standardize and strengthen supply chain security.
Trade Secrets Theft Remains Costly Risk
The push comes as the semiconductor industry grapples with rising threats of trade secret theft. Studies suggest that misappropriation of confidential business information costs developed economies between 1–3% of GDP annually.
Individual cases can run into billions, with firms like Intel estimating losses as high as $1 billion from stolen knowledge assets.
TSMC’s system aims to minimize such risks by providing an accessible, highly secure archive. Built with encryption and advanced security protocols, the platform integrates with HR and IT systems while applying AI analytics to monitor projects. This design allows companies to quickly retrieve vital information during disputes while maintaining airtight controls to prevent unauthorized leaks.
Ecosystem-Wide Protection Gains Momentum
What makes TSMC’s strategy notable is its decision to extend protection beyond its own walls. Traditionally, corporations tightly guarded IP systems internally, keeping suppliers at arm’s length. TSMC, by contrast, is building a network-wide confidentiality framework, acknowledging that supply chain weak points often expose companies to risk.
“If our suppliers also strengthen their IP management, we benefit from that as well,” said TSMC associate general counsel Fortune Hsieh.
The approach could help set new industry standards, particularly since around 70% of firms engaged in innovation rely on trade secrets as a key form of protection.
By creating a standardized, cross-border confidentiality network, TSMC not only strengthens its own defenses but also enhances the resilience of its partners in the United States and Europe. This shift may give the company a competitive edge, reassuring clients like Nvidia and Apple that their designs and technologies remain secure throughout the production process.
Hidden Value in Intellectual Assets
Beyond risk mitigation, TSMC’s move also highlights the immense, often overlooked, value embedded in intellectual property.
The company’s registry has cataloged hundreds of thousands of trade secrets, an invisible treasure trove of innovation that could otherwise remain disorganized or vulnerable.
Intellectual property lawyers note that such comprehensive cataloging streamlines disputes, making retrieval far easier than in firms that take an ad-hoc approach. With more companies recognizing that knowledge assets carry multi-billion-dollar economic value, robust systems for managing them may soon become the industry norm.
