TSMC Faces Major Security Scare as Hackers Demand Bitcoin

This article first appeared on GuruFocus.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is investigating the unauthorized exposure of personal information belonging to thousands of current and former employees, raising fresh cybersecurity concerns for the world's largest contract chipmaker. The incident introduces potential privacy and regulatory risks for a company central to the global artificial intelligence supply chain, although TSMC says its manufacturing systems and customer information have not been compromised.

The Taiwanese semiconductor giant manufactures advanced processors for major technology companies, including Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL) and Advanced Micro Devices (NASDAQ:AMD). Its business depends on protecting sensitive manufacturing processes, intellectual property and customer relationships.

In a November 12 regulatory filing, TSMC confirmed that employee information had appeared on an external website without authorization.

Taiwanese media reported that hackers claimed to possess approximately 46,000 employee records totaling 6.9 gigabytes.

The alleged attackers reportedly offered the information for three Bitcoin, threatening to release the records publicly if no buyer emerged within a week.