TSMC plans to offer its trade secrets management system to suppliers and partners in Europe and the US, aiming to improve how confidential information is handled across its network.

The world’s largest chip foundry, which supplies firms like Nvidia and Apple, has logged over 610,000 entries in its technology registry.

The system, already used by 20 firms in Taiwan, integrates with HR and IT platforms and applies AI analytics to monitor projects.

TSMC said the system was built with strong cybersecurity measures, including security protocols and automatic encryption.

However, a recent trade secret theft shows risks remain, though experts say such systems can help protect R&D-driven companies.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Systematic trade secret management reveals massive hidden value in tech companies

TSMC’s comprehensive approach to cataloging intellectual property demonstrates the enormous scale of knowledge assets at major tech companies that typically remain invisible.

The company has logged over 610,000 trade secret cases since building their system in 2013, spanning technologies and know-how across their operations 1. This massive inventory contrasts sharply with the ad-hoc approach most companies take to managing their confidential information.

The systematic cataloging pays dividends during disputes, where companies typically “need to expend significant effort to locate information, but with a registration system, retrieval is much faster,” according to intellectual property lawyer Jeanne Wang 1.

This scale of hidden intellectual assets helps explain why trade secret theft has become such a costly problem—misappropriation now costs developed economies between 1-3% of GDP annually 2. Companies like Intel have estimated individual theft cases at $1 billion in value, highlighting how much economic value sits within these typically untracked knowledge repositories 3.

2️⃣ Leading tech companies are extending IP protection beyond their own walls

TSMC’s decision to market their trade secret management system to suppliers represents a strategic shift from hoarding intellectual property systems internally to creating ecosystem-wide protection networks.

The company has already convinced 20 local firms including ASE Technology Holding to adopt their system, and now plans to extend this to suppliers and partners in Europe and the United States 1. This approach recognizes that supply chain vulnerabilities can expose a company’s own secrets. If suppliers also strengthen their IP management, “we benefit from that as well,” explains TSMC’s associate general counsel Fortune Hsieh 1.

This ecosystem approach makes business sense given that approximately 70% of firms involved in product and process innovations use trade secrets for protection 2. By standardizing protection across their supply network, TSMC potentially creates competitive advantages while reducing the risk that weak links in their supplier base could expose sensitive technologies.

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