Monday, September 1, 2025

Trade Secrets System: How TSMC Boosts Innovation and Security

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Taiwan’s TSMC is preparing to expand its trade secrets system to suppliers and partners in Europe and the US. This move comes as the company aims to boost innovation while protecting sensitive data. As the world’s largest chipmaker, TSMC produces advanced chips for major companies such as Apple and Nvidia. Its in-house trade secrets system was designed to catalog and safeguard proprietary information, helping maintain a competitive edge in the semiconductor industry.

TSMC’s Associate General Counsel, Hsieh Fu-yuan, who also chairs the Taiwan Association for Trade Secrets Protection, shared that the company plans to promote the platform internationally. Initially developed in 2013, the registry currently supports 20 Taiwanese firms, including ASE Technology. Companies that adopt this system can create a strong culture of innovation and improve intellectual property management.

The platform has already logged more than 610,000 cases, demonstrating its extensive use. Using advanced AI tools, the system monitors ongoing projects, tracks collaboration between partners, and identifies exceptional talent. This intelligent monitoring enables companies to protect their trade secrets efficiently while encouraging innovation.

A key feature of TSMC’s trade secrets system is its robust cybersecurity. It automatically encrypts all files to prevent unauthorized access. This encryption ensures that even if hackers breach the system, they cannot decipher the data. However, TSMC recently reported a theft involving trade secrets, highlighting the ongoing challenges companies face in protecting valuable information.

Legal experts emphasize the importance of the trade secrets system for research-driven businesses. Jeanne Wang, a partner at a Taipei law firm, explained that the platform simplifies evidence collection during intellectual property disputes. She said, “Without a registered inventory, companies spend significant time locating key information. This system makes retrieval much faster, improving legal defenses.”

In conclusion, TSMC’s effort to market its trade secrets system internationally signals a strong commitment to safeguarding innovation. By combining AI-driven monitoring with robust encryption, the platform helps companies protect their most valuable assets.

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