[HN Gopher] TSMC says employees tried to steal trade secrets on ...
       ___________________________________________________________________
        
       TSMC says employees tried to steal trade secrets on iPhone 18 chip
       process
        
       Author : mikece
       Score  : 232 points
       Date   : 2025-08-05 12:53 UTC (10 hours ago)
        
 (HTM) web link (9to5mac.com)
 (TXT) w3m dump (9to5mac.com)
        
       | delroth wrote:
       | It's nice to see TSMC's internal security teams are detecting
       | these things, but it would be more surprising news if this kind
       | of IP theft wasn't happening to be honest...
        
         | 0cf8612b2e1e wrote:
         | Only the bad criminals get caught.
        
       | faeyanpiraat wrote:
       | This article was just the headline repeated in various forms with
       | some generic filler
       | 
       | So strange
        
         | CGMthrowaway wrote:
         | When there isn't any info but you have to turn in 400 words to
         | your editor/get paid by the word...
        
         | jihadjihad wrote:
         | I love that there is the headline, an intro, a heading for a
         | section about the iPhone 18, and then _another_ heading titled
         | " _TSMC says employees tried to steal trade secrets_ ", which
         | is literally a word-for-word substring of the headline.
        
         | never_inline wrote:
         | At least, it doesnt look like chatgptese.
        
         | dortlick wrote:
         | There is literally no indication in the article that this has
         | anything to do with apple other than them being a potential
         | user of the TSMC 2nm process. Strange they tried to connect
         | this story to apple.
        
         | SilverElfin wrote:
         | Yep. It doesn't detail what was stolen, how they were found, if
         | they're arrested right now, or who it is suspected they are
         | working for. Useless article beyond the headline.
        
       | mschuster91 wrote:
       | Reminds me of the now-infamous "capacitor plague" [1] of
       | 1999-2007 that keeps cropping up in electronics repair.
       | 
       | [1] https://en.wikipedia.org/wiki/Capacitor_plague
        
         | gus_massa wrote:
         | I guess you got downvoted because the connection is not
         | obvious. The relevant paragraph of
         | https://en.wikipedia.org/wiki/Capacitor_plague#Implications_...
         | is
         | 
         | > _[...] A materials scientist working for Rubycon in Japan
         | left the company, taking the secret water-based electrolyte
         | formula for Rubycon 's ZA and ZL series capacitors, and began
         | working for a Chinese company. The scientist then developed a
         | copy of this electrolyte. Then, some staff members who defected
         | from the Chinese company copied an incomplete version of the
         | formula and began to market it to many of the aluminium
         | electrolytic manufacturers in Taiwan [...]_
        
         | sgarland wrote:
         | TIL! The only time (knock on wood) I ever had a motherboard go
         | bad was an MSI from around 2002, due to a blown capacitor. To
         | their credit, MSI had great support at the time, and sent me a
         | new one after I sent a photo of the blown capacitor.
        
         | voxadam wrote:
         | Asianometry has an interesting video on the topic titled _What
         | Happened to the Capacitors in 2002?_ [1]
         | 
         | [1] https://youtu.be/rSpzAVpnXo4
        
       | ants_everywhere wrote:
       | Industrial espionage has to be totally insane to defend against
       | these days.
        
         | sneak wrote:
         | I frequently wonder what steps SpaceX security has to take,
         | given the insane geopolitical significance of reusable rockets
         | and cheap access to orbit.
        
           | pythonguython wrote:
           | Spacex rocketry tech is subject to ITAR regulations. That
           | restricts who they're allowed to contract with, data
           | encryption and handling, but altogether those regulations are
           | quite bare. It likely wouldn't be enough to stop a state
           | actor or rogue employees.
        
             | pc86 wrote:
             | I think ITAR is mostly just to stop the outright sale of
             | controlled items to foreign entities, not necessarily to
             | prevent IP theft or corporate espionage.
        
               | blackguardx wrote:
               | I worked on an ITAR-controlled camera once and it was
               | drilled into me than even allowing a non-US person to
               | view the output images of the camera constituted an ITAR
               | violation.
        
               | 0xffff2 wrote:
               | Right, which is all well and good if you're a benevolent
               | actor, but ITAR really doesn't do anything at all to stop
               | you from intentionally committing (corporate or actual)
               | espionage if you want to. There should still be controls
               | to prevent you from violating ITAR either accidentally or
               | on purpose.
        
               | blackguardx wrote:
               | The controls are you go to jail if you get caught. At
               | least this is what one is told in the mandatory ITAR
               | compliance trainings. That seems to be how the law works
               | for most crimes.
        
           | de6u99er wrote:
           | I don't think what SpaceX is doing is that hard to replicate.
           | There's already competitors launching smaller payloads for
           | smaller costs per weight. Just a matter of time until they
           | creep into SpaceX's market, while SpaceX tries to build a
           | starship inspired by the Futurama rocket.
        
             | sneak wrote:
             | It is insanely valuable, both commercially and
             | strategically.
             | 
             | If it weren't that hard to replicate, several countries
             | (and Bezos/Blue Origin) would have replicated it by now.
             | 
             | I think you vastly underestimate how difficult rocketry is.
             | There's a reason "rocket science" is colloquially a
             | metaphor for an extremely difficult and technical task.
        
               | 4gotunameagain wrote:
               | The problem lies in forming and managing such a huge
               | organisation that deals with the problem in an efficient
               | and lean way, not the technical aspects.
               | 
               | The materials science aspect is a challenge, not to
               | produce, but to produce with a sane cost.
               | 
               | The rocket science aspect of things (namely the
               | linearisation of the booster model in order to be able to
               | be solved in constant time by an MPC) is more or less a
               | solved problem.
               | 
               | Coordinating such complex interconnected systems will
               | always remain one.
        
               | tonyhart7 wrote:
               | so it still "rocket science", you saying that the hard
               | part is to make it lean and efficient
               | 
               | isn't that what they do in SpaceX????, your comment
               | literally counterproductive
        
               | vFunct wrote:
               | SpaceX itself replicated the DC-X from the 90's. The
               | reason the DC-X was cancelled was because of the
               | economics. Reusable rockets are a solved problem, with
               | only the economics of it a barrier (see Space Shuttle).
               | SpaceX has to rely on their own investor funding for
               | Starlink to remain a viable entity.
        
               | peterfirefly wrote:
               | The DC-X was stupid, dumb, insane, bunkers, and a waste
               | of money and not replicable.
               | 
               | "sure, let's put four RL-10 hydrogen engines on it! They
               | are expensive and the worst possible for the low-altitude
               | flights we are going to do so some sucker will believe we
               | can do multi-stage reusable flights to orbit".
               | 
               | "sure, we don't actually need to go to orbit anyway. That
               | was always a dumb idea. Who said we ever wanted to do
               | that? No, suborbital is really useful, we promise. And we
               | are going to do it with a single stage (using hydrogen)
               | cuz we are so smart and the future and everything!"
               | 
               | "sure, let's build a specialized hydrogen tank in a
               | stupid shape."
               | 
               | "sure, let's give the whole single-stage low-altitude
               | rocket a k00l shape that makes it more expensive."
               | 
               | "People knowing it can't be done shouldn't interrupt
               | people doing it wrong."
        
               | llm_nerd wrote:
               | >If it weren't that hard to replicate, several countries
               | (and Bezos/Blue Origin) would have replicated it by now.
               | 
               | There is a 100% chance multiple countries/companies will
               | have replicated it in the next decade. If SpaceX never
               | existed, they likely would have achieved it at the same
               | pace regardless.
               | 
               | This is the same with EVs. If Tesla never rose, the world
               | EV market outside of Tesla would have seen precisely the
               | same rise.
               | 
               | There is a tendency to attribute the early movers with
               | innovation in the inevitable, where we all stand on the
               | shoulders of others and just reach a little higher.
               | 
               | As to the rocket science misnomer, that's a space race
               | hangover where an engineering role was extremely public
               | and celebrated, but in actual reality "rocket science" is
               | a mediocre field with miserable pay and high
               | unemployment.
               | 
               | As to how valuable it is, "insanely"? The world has a
               | fairly finite launch need, such that SpaceX made a whole
               | new business -- Starlink -- to make work for their
               | capacity. Economically the space launch business is
               | relatively minuscule.
        
               | dagw wrote:
               | _If Tesla never rose, the world EV market outside of
               | Tesla would have seen precisely the same rise._
               | 
               | would have seen the same rise _eventually_. I know from a
               | friend that worked R&D at a major car company that Tesla
               | really lit a fire under then and 'forced' them to push
               | their own EV experiments from proof of concepts to
               | commercial product much faster than they where originally
               | thinking about doing it.
        
               | llm_nerd wrote:
               | The EV ventures of most automakers are massive money
               | losers (just as it always has been for Tesla outside of
               | selling green credits and subsidies). But for sure they
               | all rushed to get there not because the EVs themselves
               | were valuable, but because of the insanity of the capital
               | markets where Tesla is valued at a trillion dollars at a
               | 200x P/E, while the rest of the market is at like a 7-14x
               | ratio. Everyone wanted some of that irrational hype.
        
               | jmpman wrote:
               | I question your EV take. Tesla proved a business model,
               | the technology and path from niche sports car to the best
               | selling car on earth, and now on to the lowest cost per
               | mile robotaxi. Simply knowing that a solution exists and
               | is financially viable, is enough to motivate the
               | competition.
        
               | llm_nerd wrote:
               | >Tesla proved a business model
               | 
               | Through almost all of Tesla's existence, its business
               | model was ironically the sale of gasoline vehicles.
               | Because, of course, Tesla's entire business model relied
               | upon selling green credits to incumbent ICE vehicle
               | makers.
               | 
               | So it didn't really prove much of a business model,
               | effectively being parasitic.
               | 
               | >the technology and path from niche sports car to the
               | best selling car on earth,
               | 
               | The _overwhelming_ bulk of the technology advancements
               | that enable modern EVs -- from advances in batteries to
               | cameras to sensors to embedded controllers and CPUs -- is
               | thanks to the smartphone industry. Modern EVs owe
               | infinitely more to those than they do to anything Tesla
               | did.
               | 
               | >knowing that a solution exists and is financially
               | viable, is enough to motivate the competition.
               | 
               | I think of this much like compact fluorescents. Remember
               | those? We all rushed to transition, and then they were
               | absolutely demolished in every metric -- efficiency,
               | colour, and most importantly the amount of environmental
               | contamination when disposed -- by LED lights. I feel like
               | we're going to feel the same about early EVs.
               | 
               | >now on to the lowest cost per mile robotaxi
               | 
               | Is this a serious comment?
        
               | trogdor wrote:
               | > The overwhelming bulk of the technology advancements
               | that enable modern EVs -- from advances in batteries to
               | cameras to sensors to embedded controllers and CPUs -- is
               | thanks to the smartphone industry.
               | 
               | Would you point me to a source where I can read about
               | this?
        
             | pc86 wrote:
             | This comment has big "I could build a better SpaceX I just
             | don't want to" vibes.
        
               | indoordin0saur wrote:
               | If only _my_ dad had an emerald mine then _I 'd_ be the
               | billionaire rocket scientist CEO
        
               | pc86 wrote:
               | https://www.snopes.com/news/2022/11/17/elon-musk-emerald-
               | min...
               | 
               | TLDR: It's nonsense.
        
               | relaxing wrote:
               | Funny how many words it takes to say Elon's dad in fact
               | own a stake in an emerald mine, invest in Elon's
               | business, and give Elon an incredibly privileged
               | upbringing.
        
               | pc86 wrote:
               | There's a lot of unanswered questions from the article
               | which is seems anyone with even mediocre skills as a
               | journalist should be willing and able to answer.
               | 
               | It mentions the mine "collapsed" in 1989. Does that mean
               | literally? Just financially? Was there an insurance
               | payout? Did everyone lose their investment? Did Errol
               | Musk own 1% or 90%?
               | 
               | * In quoting another article, it does say: "Errol Musk,
               | an engineer, owned a small percentage of an emerald mine
               | and had a couple of good years before the mine went bust
               | and wiped out his investment."
               | 
               | Elon graduated from college less than 10 years later but
               | says he was $100k in debt. Was he actually in debt? Did
               | he spend years paying that off or did he (or someone
               | else) pay it off shortly after in a lump sum or very
               | quickly?
               | 
               | His dad provided $20k of a $200k seed round for Zip2, was
               | the rest also from friends and family or more
               | institutional investors? Did his dad receive equity for
               | that or was it a gift?
               | 
               | Reading through the article again (and a little more
               | closely than before) it doesn't seem Elon had "an
               | incredibly privileged upbringing" but maybe that's a mix
               | of good PR and this now being 40-some years ago? They're
               | referred to as upper middle class but if that's all it
               | takes to be "incredibly privileged" then 90% of the kids
               | born to people reading HN are also incredibly privileged.
               | 
               | Arnold's piece seems to contradict basically everything
               | else in the article so I'm not sure what to make of it,
               | but it also sounds like he made about $350k profit over
               | the lifetime of his ownership in the mine? Certainly not
               | nothing but it's not opulence and it doesn't sound like
               | most (any?) of that made its way to Elon.
        
               | relaxing wrote:
               | > Elon mostly lived with his father, who says he owned
               | thoroughbred horses, a yacht, several houses and a
               | Cessna. One of their homes was in Waterkloof, a leafy
               | suburb of Pretoria that was popular with foreign
               | diplomats.
               | 
               | > Wanderlust ran on both sides of the family. On
               | holidays, Errol and his kids would travel, he said: to
               | Europe, Hong Kong, throughout the United States. Or
               | they'd take the plane to Lake Tanganyika [in Zambia],
               | where Errol had a stake in an emerald mine.
               | 
               | That sounds more privileged than upper middle class to
               | me.
        
           | colechristensen wrote:
           | Lots of space technology is classified as weapons subject to
           | export control. ITAR has plenty of rules about who can see
           | information. US immigration status generally has to be green
           | card or citizen, and country of origin and any second
           | citizenships are considered.
           | 
           | ("export control" in this sense really doesn't have to do
           | with moving a physical object out of the country but sharing
           | information, to the extent that a conversation in an elevator
           | could be an export violation. most export violations amount
           | to emails being sent to the wrong person)
           | 
           | When I worked briefly in defense, for example, there would be
           | regular random searches of my stuff as I exited the building
           | and security would wander the building and look at what you
           | left out on your desk while you went to lunch. Entirely
           | seriously they told us not to wear our badge in public if we
           | left the building and not to leave our laptops in our cars
           | because someone might follow us and steal it. Had colleagues
           | who were visiting a foreign country for work have their hotel
           | rooms obviously thoroughly and messily searched while they
           | were out.
           | 
           | They _also_ do national security missions so there are folks
           | there with high clearances.
           | 
           | Thing is that even if you did steal a bunch of information,
           | that doesn't mean you could just copy and be successful. Any
           | one of a million things can go wrong with a self-landing
           | rocket that will cause it to explode, you can't just steal
           | the whole system of operation that keeps these things from
           | happening.
           | 
           | You couldn't steal all of the secrets of a circus performer
           | and suddenly be able to juggle chainsaws while riding a
           | unicycle.
        
           | chilmers wrote:
           | So, this is admittedly a little tinfoil, but I wouldn't be
           | surprised if Musk is happy for some degree of espionage to
           | happen. If it looked like there was a possibility of China
           | getting this capability first, it would light a fire under
           | the US government to give financial and regulatory assistance
           | to the Starship program.
        
             | amelius wrote:
             | https://www.patsnap.com/resources/blog/elon-musk-claims-
             | pate...
        
             | bilbo0s wrote:
             | Musk does seem to think in terms of how much money he can
             | get from the government for his companies. But to be fair,
             | government subsidies are a successful strategy for
             | entrepreneurs who want to make a lot of money.
             | 
             | Maybe they shouldn't be? And I think honest people can have
             | that debate.
             | 
             | But you can't really argue against the effectiveness of
             | government subsidy as a path to prosperity for the guy
             | getting the money.
        
               | sockp0pp3t wrote:
               | This worked for at least one Burisma employee
        
               | sharpshadow wrote:
               | It's primarily in the government interest in subsidising,
               | except when it's a corrupted subsidy.
        
               | indoordin0saur wrote:
               | Despite his faults he does seem to care about the actual
               | lofty mission statements of his companies more than just
               | straight profit. Otherwise, you wouldn't see bizarre
               | things like him directing Tesla to open source all their
               | patents.
        
           | m4rtink wrote:
           | I would say the main element of their success is not really
           | in any specific close kept secrets - its in actually
           | committing to reusable rockets and keep working until they
           | had a working system.
           | 
           | While there are some really nice components and clever ideas
           | (Merlin/Raptor engines & very good guidance tech) this all
           | really has been doable for decades in less efficient form.
           | 
           | But so far no one other than Space X has been able to win
           | against all the naysayers who were so sure only single use
           | rockets are ever going to work, get enough funding to build a
           | partial RLV & then operate it successfully as a business.
           | 
           | I don't think it depends on any single technology or a set of
           | them only they have access to - rather that they have been
           | able to persist and see it through, unlike all the other RLV
           | projects that never got funding to go past the paper stage or
           | very simply not viable (Space shuttle).
        
           | bwfan123 wrote:
           | There is a very nice chapter in the somewhat dated but
           | classic book Business Adventures [1] on trade-secrets and
           | what happens when employees of one company move to another.
           | In chapter 11, "A man, his knowledge, and his job", there is
           | a story of a "space-suit" manufacturer Goodrich suing an
           | employee for moving to its rival Latex for stealing trade-
           | secrets. The story is timely in context of Meta hiring
           | researchers from open-ai, deepmind etc for 100s of millions
           | for the knowledge in their heads of the recipes which work
           | for making superior LLMs - the knowledge of which is
           | empirical and may take years to discover.
           | 
           | [1] https://www.amazon.com/Business-Adventures-Twelve-
           | Classic-St...
        
             | AlotOfReading wrote:
             | You could also argue that they're hiring people for the
             | general expertise they have in developing frontier LLMs.
             | Distinguishing trade secrets from general knowledge is
             | difficult and employees building the latter to make them
             | more valuable to new employers is an explicit policy goal
             | of US employment law.
        
             | CGMthrowaway wrote:
             | What is the story?
        
           | _DeadFred_ wrote:
           | I imagine SpaceX having pretty fishbowl conference rooms for
           | customers in the center of everything, with guest network
           | ports just segmented off from the main but using the same
           | hardware. Oh man that would stress me out if I was IT. And of
           | course the '<Customer name> needs to print something off and
           | needs access to the MFCs'. No, you print it out for them,
           | like has been discussed and agreed to and keeps with ITAR.
           | 'No, they need access, and now. Because I'm a sales guy and I
           | won't tell them no' but if they get into/past the MFC, it's
           | all on IT and IT being bad at their job/security, not the
           | sales guy that demanded they get physical access.
        
         | tjpnz wrote:
         | Just knowing how the thing is built doesn't seem to be enough.
         | Comac still sources its jet engines from Pratt and Whitney for
         | instance, despite many years of trying no local manufacturer
         | has been able to build them to the same spec.
        
           | baggachipz wrote:
           | Or for analogy, following a recipe doesn't make you a good
           | cook.
        
             | chii wrote:
             | But it also depends on how precise the recipe is - if it's
             | described down to the exact movements the cook needs to do,
             | which may be replicated via a machine...
        
               | baggachipz wrote:
               | No recipe accounts for ambient temperature/humidity, very
               | few for altitude differences, etc. etc. It still takes
               | knowledgable tweaks to get just right.
        
               | moralestapia wrote:
               | Such recipe could exist.
        
               | adolph wrote:
               | At the end of the day, the map won't ever be the
               | territory. Typically the properties that makes something
               | successful are those which cannot be specified. If it
               | were otherwise and those qualities could be specified in
               | a reproducible manner, that thing would not be observably
               | successful.
        
               | kergonath wrote:
               | They exist in the industry, where a small variation of
               | one parameter could affect tons of products. Same for
               | individual restaurants, cooks know how to set up their
               | equipment. For amateur cooks at home it does not matter.
               | They do not need that level of consistency, and it would
               | get quite expensive.
        
             | reaperducer wrote:
             | _Or for analogy, following a recipe doesn 't make you a
             | good cook._
             | 
             | Following a recipe can you close enough for thousands of
             | Door Dash customers to put the original restaurant out of
             | business.
        
               | baggachipz wrote:
               | I feel like you're reading too deeply into my shallow
               | analogy.
        
               | FredPret wrote:
               | I'm not sure - what if China can flood the world with
               | 80%-as-good-as-the-real-thing knockoffs at half the price
               | and put everyone else out of business?
        
             | motorest wrote:
             | > Or for analogy, following a recipe doesn't make you a
             | good cook.
             | 
             | For an analogy, no one cares if you're a good cook if
             | you're able to make a passable burger. Most of the demand
             | is not for the best burger money can buy, the just want a
             | burger.
        
           | mitjam wrote:
           | A relative of mine worked at a medical devices company (brain
           | sensors). She told me how small intricacies of the
           | manufacturing process were critical to reach good enough
           | yield or functioning devices, at all. The critical process
           | steps were closely guarded and only a handful employees knew
           | how to do them. The devil is often in the details - and the
           | moat, too.
        
           | Cyph0n wrote:
           | Are P&W and Rolls Royce the only companies in the world
           | capable of manufacturing high-end jet engines end-to-end?
        
             | seanmcdirmid wrote:
             | No, but they provide the best efficiency/performance for
             | the buck. China can produce its own jet turbines, but they
             | have to trade off performance or longevity to do it.
        
               | Cyph0n wrote:
               | Interesting. Thanks.
        
             | prussian wrote:
             | Don't forget GE Aerospace. It gets a bit weirder too since
             | you have joint ventures like CFM and Engine Alliance.
        
               | Cyph0n wrote:
               | Good point. Isn't there also Safran?
        
               | kergonath wrote:
               | Yes. Their engines are mostly for military applications,
               | tough, so they are less well known of the general public.
               | Other than that, they are half of CFM International, but
               | again they are not very visible.
        
             | a2tech wrote:
             | They don't make them end to end either. Their jet engines
             | are made up of parts supplied by thousands of suppliers.
        
               | Cyph0n wrote:
               | Obviously, but I would imagine that most of the "magic"
               | isn't in the supplied components, but in the finished
               | product. Otherwise reproduction would be easier.
        
           | prussian wrote:
           | Which Comac? I thought they all used GE (CFM for Comac 919)
           | or Russian/Chinese sourced engines.
        
             | ta20240528 wrote:
             | That's the OP's point: COMAC is using CFM LEAP 1-C engines
             | on the C919.
             | 
             | To be fair, they have taken the effort to build the CJ
             | 1000A engine - which is on wing testing should the
             | tangerine fellow cut them off. But its Plan B at best.
        
           | Workaccount2 wrote:
           | The product I oversee at my job is something that can only be
           | built by people who are intimately aware of the process and
           | have a strong understanding of the underlying engineering.
           | 
           | We could hand the full project file to a competitor and they
           | almost certainly would not be able to build functional units.
           | The failure points are fractal, so you need a strong
           | intuition about what part you are installing, what qualities
           | an ideal part has, what qualities the one in your hand has,
           | how you might install it differently because of those
           | qualities, and/or how you might change a later process to
           | accommodate it. Or if the part should just be junked. The
           | process is fraught with seemingly good intuitions that will
           | ultimately lead you to failure as well.
           | 
           | These units also cannot be reworked, reused, or repaired, so
           | any mistake before finalizing the build junks the entire
           | thing.
           | 
           | For extremely low-entropy products, mother nature is
           | incredibly unforgiving.
        
             | wyre wrote:
             | What product is it?
        
             | tracker1 wrote:
             | That's not a high bar... Boeing can't seem to reliably
             | manufacture their own designs.
        
             | K0balt wrote:
             | This is a bigger issue than most people appreciate, and a
             | huge problem for the USA.
             | 
             | There is a specialised trade known as tool and die maker,
             | or just die maker
             | (https://en.m.wikipedia.org/wiki/Tool_and_die_maker) that
             | is fundamental to a country's ability to create industrial
             | capacity. So far, no automation tool has been able to
             | replace their expertise.
             | 
             | Without die makers, you can't build tools that make things,
             | you can't build factories, and mass production in general
             | is dependent on their skillset.
             | 
             | Right now, the USA only has 50k die makers, and the average
             | age of a die maker, including apprentices, is 54. The
             | average age of a master die maker is 73, and the average
             | age of a journeyman is 62. A master die maker can teach
             | about 5 apprentices to the journey man level in a work
             | environment, after 2+ years of basic engineering school, in
             | about 5-7 years. A journeyman may generally considered a
             | master after 10-20 years of experience, depending on the
             | nature of their experience.
             | 
             | We don't have enough die makers to rebuild the industrial
             | capacity of the USA, and we can't teach the amount we need
             | in less than 5-7decades without some kind of major change
             | in the process of doing so. And since more than half of the
             | master die makers are months from retirement or death, we
             | are in an extremely precarious position as a viable
             | industrial power.
             | 
             | This is why it is extremely difficult to build anything
             | physical in the USA using only USA sourced parts and
             | materials. It's almost impossible to even get a decent
             | variety of screws and fasteners made here in the USA, and
             | we can't easy build the machines to make screws because of
             | the critical shortage of master die makers.
             | 
             | If we are to maintain the ability to build and maintain our
             | machines, weapons, and critical infrastructure without
             | being completely dependent on imported tools, supplies, and
             | knowledge, we will have to reinvent the industrial process
             | using automation or something similar to compensate for our
             | foolish exportation and devaluation of strategic skills and
             | capabilities.
        
               | asdff wrote:
               | If the average age is 73 that's the issue right there.
               | People are refusing to retire at 62 and make room for
               | juniors. Then when they finally do retire (73 average
               | seems like "dies in office" levels) there are 2 decades
               | of missing juniors who haven't been trained in the
               | pipeline.
               | 
               | This is the shortcoming with most technical fields. No
               | one is incentivized to see the big picture of the
               | training pipeline that exists well outside the scope of
               | their own company. No one likes juniors but that is their
               | future.
        
               | Workaccount2 wrote:
               | The actual killer is the pay and working conditions, and
               | the problem is fairly intractable.
               | 
               | If you are smart enough to be a good tool maker, you are
               | likely smart enough to be a good 6-figure keyboard-all-
               | day worker. Losing a finger (or three) and breathing VOCs
               | all day for half the pay is not very enticing.
               | 
               | These industries aren't glamourous for investors either.
               | The business proposition sucks, the cost and liabilities
               | are intense, and the margins would need to be negative to
               | be truly competitive.
               | 
               | And worse than anything, the stuff that comes from China
               | is not only 1/10th the cost, _it 's also now better
               | quality_.
        
               | bsder wrote:
               | The problem is that these jobs are hard and the pay is
               | crap.
               | 
               | SmarterEveryDay attempted to make a grill scrubber in the
               | US. https://www.youtube.com/watch?v=3ZTGwcHQfLY
               | 
               | tl;dr He did it, but it went very poorly.
        
               | ToDougie wrote:
               | Thank you for taking the time to post this. You've
               | outlined problems that are absolutely solvable.
        
           | mensetmanusman wrote:
           | We don't have sensors that can grok the full building process
           | that deep human experts have.
        
           | throw0101c wrote:
           | > _Just knowing how the thing is built doesn 't seem to be
           | enough._
           | 
           | See perhaps:
           | 
           | > _Tacit knowledge or implicit knowledge is knowledge that is
           | difficult to extract or articulate--as opposed to
           | conceptualized, formalized, codified, or explicit knowledge--
           | and is therefore more difficult to convey to others through
           | verbalization or writing. Examples of this include individual
           | wisdom, experience, insight, motor skill, and intuition.[1]
           | An example of "explicit" information that can be recorded,
           | conveyed, and understood by the recipient is the knowledge
           | that London is in the United Kingdom. Speaking a language,
           | riding a bicycle, kneading dough, playing an instrument, or
           | designing and operating sophisticated machinery, on the other
           | hand, all require a variety of knowledge that is difficult or
           | impossible to transfer to other people and is not always
           | known "explicitly," even by skilled practitioners._
           | 
           | * https://en.wikipedia.org/wiki/Tacit_knowledge
        
           | varispeed wrote:
           | Building even basic things is difficult. Friend of mine tried
           | like dozen companies from around the world to manufacture
           | very basic milled aluminium part. None of them could make it.
           | Only one company could make 1 or 2 right out of 100.
        
             | helij wrote:
             | Sorry, but I find that hard to believe. Part certainly
             | wasn't very basic.
        
           | _DeadFred_ wrote:
           | I can't remember but I think Lance Air or Epic got split in a
           | sale and a company bought the type design/blueprints but ran
           | into issues actually manufacturing from them.
        
         | duxup wrote:
         | It seems to me companies ... don't care out side some easy to
         | do basic things.
         | 
         | But when push comes to shove if manufacturing is cheaper in a
         | country where lots of folks want to steal your things. -shrug-
         | Short term profits win.
        
           | 93po wrote:
           | am i crazy for not caring if a company in a foreign country
           | obtains trade secrets and manufactures the same thing? like
           | we're all humans and we all want access to whatever it is
           | they're building, it seems like more people building the
           | thing is a good thing. if that impacts Samsung's profits, why
           | do I care? its not like corporations give a shit about me
        
             | duxup wrote:
             | I really can't answer that, it's your call if you care or
             | not.
             | 
             | I think that the more of a free for all folks stealing tech
             | as they wish will push companies who do the development
             | work towards more proprietary / DRM and similar solutions
             | ... I don't like that.
             | 
             | Allowing people to profit from their inventions /
             | investments encourages more such development, and without
             | that discourages it or encourages less good options.
        
             | echelon wrote:
             | Some countries have all the talent and manufacturing and
             | sourcing advantages. Once they take the lead, you might
             | never be able to keep up.
             | 
             | Your engineers lose their jobs, your businesses go
             | bankrupt, you exit that entire field entirely for your
             | entire population. Slowly your ability to do work begins to
             | evaporate.
             | 
             | It's happened before and it'll continue to happen.
        
               | zozbot234 wrote:
               | > Slowly your ability to do work begins to evaporate.
               | 
               | To be clear about this, you can still physically do the
               | work same as before, it's just become uneconomic/not
               | competitive. It's not all bad though. Having another
               | country take the bulk of the market leaves you free to
               | differentiate and specialize in one or more profitable
               | niches that are not being served well by what is now the
               | main supplier. You might end up dominating some fraction
               | of what's now a vastly bigger market, with improved
               | economies of scale that you're free to exploit as well.
        
               | echelon wrote:
               | That's a bit like an exercise left to the reader. Or
               | wishful thinking.
               | 
               | We hope that it works out that way, but there's simply no
               | guarantee. It's not an economic law.
               | 
               | If the country supplying said thing can have domestic
               | companies deliver at lower margin, you're still kind of
               | screwed. Their internal competition fills out the niches,
               | which they can then export.
        
               | 93po wrote:
               | isnt that what tariffs are for?
               | 
               | there's something that rubs me wrong about the argument
               | of "we need IP laws because otherwise someone else might
               | do the same thing as us, but better, and we won't be able
               | to compete"
        
             | khuey wrote:
             | Well who are you? Maybe there is no reason for you to care.
             | 
             | TSMC alone is 12% of Taiwanese exports. The entire
             | semiconductor industry is 25% of Taiwan's GDP. It's obvious
             | why the Taiwanese government and society, to say nothing of
             | TSMC's shareholders, would care.
        
             | fidotron wrote:
             | Yes, because if you tolerate that you disincentivize
             | actually developing the IP in question in favour of
             | stealing everyone else's, which leads to nothing being
             | developed.
        
               | 93po wrote:
               | is it impossible for society to advance without IP laws?
               | is capitalism a requirement for advancement?
        
               | flkenosad wrote:
               | No. Of course not. This is just something IP holders say
               | because they profit.
        
             | rangestransform wrote:
             | I work at a tech company and I'd rather have other
             | countries pay my company to do it, rather than do it
             | themselves with less-than-US salaries
        
         | amelius wrote:
         | Compartmentalize your company. Make sure people from one
         | compartment are unaware about things people from other
         | compartments are doing. Don't transfer/hire across compartment
         | boundaries.
        
           | ujkhsjkdhf234 wrote:
           | This is such a bad idea.
        
             | amelius wrote:
             | Care to say why? Security always comes at a cost ...
        
               | ujkhsjkdhf234 wrote:
               | You don't need to deliberately create silos in order to
               | secure a project. We've had people working on top secret
               | projects and while people may not have known the
               | specifics the company was kept up to date on the progress
               | and outcomes of the project. We brought people in from
               | other teams after an extra vetting process and additional
               | NDA specific to that project.
        
               | amelius wrote:
               | With industrial espionage, NDAs aren't going to cut it
               | ...
        
               | xxpor wrote:
               | For the vast vast majority of companies, their success
               | comes down to culture and execution rather than "the tech
               | secret". You can't really steal that.
               | 
               | I will grant you, the specific case of TSMC is definitely
               | in the rarer case where there are true tech secrets.
        
             | nunez wrote:
             | Apple does this.
        
               | amelius wrote:
               | Apple is great because their hardware and software is so
               | well integrated.
               | 
               | If they compartmentalize their hardware and software
               | departments, we might as well split them into a hardware
               | and a software company.
        
               | ujkhsjkdhf234 wrote:
               | Most companies aren't Apple.
        
       | KaoruAoiShiho wrote:
       | Locally in Taiwan, there's growing suspicion that the 2nm process
       | technology was leaked to Japan's Rapidus.
       | 
       | People are questioning whether the technology was leaked to
       | Rapidus through Japanese equipment suppliers.
        
         | AnonMO wrote:
         | make no sense since Rapidus 2nm process is from IBM.
        
           | tonyhart7 wrote:
           | idk which shocking, Japanese company try to steal TSMC or IBM
           | have 2nm process out of nowhere
        
             | speed_spread wrote:
             | "Out of nowhere" would be a stretch. IBM may not have mass-
             | market volume anymore but they kept up the production chain
             | to build mainframes (and I would guess other "specialty"
             | products) for institutional customers.
        
               | tonyhart7 wrote:
               | Intel struggling to reach that level while still
               | producing mass chips, Texas instrument is not even close
               | to that level while being No 2 on US in many many years
               | 
               | and You tell me that this guy have bleeding edge tech
               | without telling people??? and suddenly build that in
               | Japan??? seems like bullshit since US literally need to
               | make TSMC come to the US
               | 
               | if IBM can build that, US Gov don't need to suck a TSMC
               | d*k
        
               | protimewaster wrote:
               | IBM has been publicly working toward 2nm since at least
               | 2021, though, so it doesn't seem like it's coming from
               | nowhere. Unless this is a completely different 2nm
               | development, here's a presser about it from 2021, titled
               | "Introducing the world's first 2 nm node chip"
               | (https://research.ibm.com/blog/2-nm-chip)
        
               | tonyhart7 wrote:
               | You only read first line of my comment????
               | 
               | I can claim that I have working solution for 2nm too
        
               | tomasphan wrote:
               | What's going on big guy? Maybe take a break from
               | commenting
        
             | trynumber9 wrote:
             | IBM has kept researching in Albany. They license
             | manufacturing technology to other parties even if they gave
             | up trying to build their own fabrication facilities a
             | decade ago.
        
           | re-thc wrote:
           | > since Rapidus 2nm process is from IBM
           | 
           | Unless it has great yields with 0 issues, there's always
           | things to learn from. It's also possible the IBM process
           | isn't what it seems and there's more to it.
        
           | bilbo0s wrote:
           | We can make hypersonic missiles.
           | 
           | I still want to get a look at China's. Right down to the
           | metallurgy.
        
       | simpleintheory wrote:
       | The original link from Nikkei Asia that the 9to5mac article is a
       | repost of has some more information and less generic filler:
       | 
       | Link: https://asia.nikkei.com/business/technology/tsmc-fires-
       | worke...
       | 
       | Archive: https://archive.ph/ta1kq
        
       | sgarland wrote:
       | Right before I left Samsung Austin Semiconductor (Samsung's fab
       | in the U.S.), in 2019, they were phasing out local share drives
       | in favor of a self-hosted cloud that Samsung created. The
       | supposed reason was better security, though it's unclear to me
       | why they couldn't globally apply whatever rules they wanted to
       | enforce to all office locations, instead of forcing everyone to
       | use a remote endpoint. The throughput was absolutely terrible,
       | like < 1 MBps. My department had some large files, so that was
       | fun.
       | 
       | One such file was an Excel file that was more script than
       | anything else. We had to have labels in a specific format on
       | every machine we owned in the fab, which was something like 250
       | of them. The normal stuff like its id number, and also which
       | points of contact for a technician and engineer, as well as their
       | photos and phone numbers. Manually balancing and re-balancing
       | every time a shift gained or lost an employee would've been
       | obnoxious, so naturally instead countless hours were spent
       | coercing VBA and ODBC to query a DB containing employee info,
       | extracting and resizing their headshot, applying all of this to a
       | template label, queuing a print job, and repeating. It was pretty
       | fun to watch, honestly. I think I also had created a floor plan
       | map somehow, and it would do its best to group a given
       | technician's assigned machines such that they minimized distance
       | traveled during inspections. Anyway, the large file size was due
       | to it caching the headshots (might have made a hidden tab for
       | each? I don't remember) for better performance, as that had
       | proven to be a bottleneck.
        
         | gedy wrote:
         | Nice ha. Your story reminds me of why I flinch whenever I hear
         | "just give them the spreadsheet, engineer, don't argue..."
        
         | hbarka wrote:
         | At least they didn't make you use Sharepoint and OneDrive. How
         | fun using VBA and ODBC in 2019, proving the mighty Excel will
         | go on as the new MS Access.
        
         | ryanjshaw wrote:
         | This abuse of Excel might be in the running for a new form of
         | esports.
        
           | boredtofears wrote:
           | https://excel-esports.com/
        
             | fragmede wrote:
             | https://youtu.be/QwNoFOUiSiE
        
           | bombcar wrote:
           | Roko's Basilisk or whatever it is should more properly be
           | called Excel's Visual Basicilisk - once Excel becomes self-
           | aware it is going to punish everyone who tortured it for
           | decades.
        
           | ethbr1 wrote:
           | It's always worth remembering there's exactly one reason
           | Excel is abused -- IT isn't giving "non-developers" access to
           | tools they need to automate their work.
        
             | LarMachinarum wrote:
             | while I don't doubt that such situations also exist, that
             | wasn't the reason for any of the many "Excel abusers" I've
             | encountered in different positions. Quite to the contrary,
             | these people all had access to the appropriate tools, but
             | their whole thinking was totally formatted and fixated on
             | Excel as their go-to tool for everything:
             | 
             | be it things better done with a database, a word processor,
             | a diagramming program, a label generator, a Form editor, a
             | markup language, a web page, anything: they had all the
             | tools at their disposal but no, no, they felt the odd
             | compulsive need to do it with only Excel instead...
             | 
             | ...often leading to problems down the line when the
             | limitations of Excel for the use case (for which it wasn't
             | made) would show more and more but they wasted already so
             | much time and (needless) effort doing it in Excel that they
             | would be even more reluctant to the possibility of
             | switching to any more appropriate tool for the task.
        
               | tracker1 wrote:
               | The VBA hammer is real... it can force any screw, nail,
               | staple into any hole you desire.
               | 
               | Until the web version takes over, and you can no longer
               | connect to anything real.
        
               | john01dav wrote:
               | I doubt that the people who use Excel care enough about
               | computers to be deterred by cloud.
        
               | deepsun wrote:
               | In hotel industry they need to calculate and set a price
               | for each room/night. Typically that's done by solving
               | convex optimization (e.g. simplex method) and using
               | "shadow values" from it as the price per room.
               | 
               | Lo and behold, not every math package provides "shadow
               | values". So you either buy a specialized math tool, or...
               | use Excel, that has it built-in.
        
             | garyfirestorm wrote:
             | Bingo. Working in an automotive OEM the entire company
             | works on excel specifically excel vb scripts. No one knows
             | why and no one has figured out how we got here. But it's
             | slow and steady abuse excel.
        
               | FirmwareBurner wrote:
               | How do you do fellow Germans
        
             | FirmwareBurner wrote:
             | Also how the simplest, fastest and most secure way to send
             | someone from another corporation a file for collaboration
             | is an encrypted zip and phone in the password.
        
           | raverbashing wrote:
           | Maybe we need an IOCCC or Demoscene for Excel
        
           | CGMthrowaway wrote:
           | It just sounds like Mail Merge to me. Which if you were using
           | a computer for work in the 90s, you might know something
           | about. (It was also convoluted) :)
        
         | jve wrote:
         | It is great that particular tools enable employees automate
         | stuff and make their work more effective.
         | 
         | From developer point of view I see that the effort would most
         | certainly be diverted in another kind of solution.
         | 
         | But yeah, "citizen developer" stuff is a thing that microsoft
         | pushes especially in Power Platform / Canvas Apps - one
         | programs with WYSIWIG and Excel-like formulas (PowerFX)
         | 
         | But then again I wonder who are the people that can program in
         | VBA and chooses excel. Is it the constraint around software
         | they can use? An excel being a GUI which you don't have to
         | implement? Anyways, a net positive for business.
        
           | skeezyboy wrote:
           | where else can you run vba these days?
        
           | mjlee wrote:
           | I'm sure the free GUI is the gateway drug, but at this point
           | practically everybody in finance uses Excel. You can pass
           | files and scripts around and be pretty confident that the
           | external auditor will be able to use them.
        
         | WhyNotHugo wrote:
         | > it's unclear to me why they couldn't globally apply whatever
         | rules they wanted to enforce to all office locations, instead
         | of forcing everyone to use a remote endpoint
         | 
         | My guess is that they're worried that you'll download data and
         | then copy it out of the device while the device is offline. An
         | employee could even "lose" the device, giving an attacker
         | unbound time to extract data from it.
         | 
         | Another equally likely explanation is that the exec in charge
         | of their cloud services gains more prestige due to his solution
         | being universally adopted internally, or some other crap along
         | this line.
        
         | CGMthrowaway wrote:
         | A common and innovative solution to this problem now, that I
         | have seen in other fabs (not semis, but other industries), is
         | to put QR codes on each machine. That way the info behind it
         | can be dynamic and maintained
        
       | metalman wrote:
       | Grandpa worked heat treat at the alegany national forge, where
       | they made stuff like the beams for the empire state building,
       | periscope tubes, and the 16" guns for the biggest battle ships,
       | each thing had to be tempered in a very specific way, and to deal
       | with spying and espionage, the charts and instuments used on the
       | shop floor were all deliberatly wrong,and the written
       | instructions were also wrong leaving the person in charge to know
       | how to convert the given instructions into what was actualy done
       | through a secret method, not complicated, but essentialy
       | impossible to reverse engineer. There is a story of soviet
       | engineers who somehow were invited to tour the RR jet turbine
       | factory, and were given shoes that had extra sticky soles they
       | wore only for the tour, which ewere then used to anyalise the
       | metal chips that get picked up from the shop floor..... never
       | ends, expected.....even honored
        
       | TheAceOfHearts wrote:
       | Could someone help contextualize what parts of this manufacturing
       | process are considered the most important and closely guarded
       | trade secrets? I'd love to hear some slightly more concrete
       | examples.
       | 
       | How easily could another company replicate this process if they
       | knew all the key details? It was my understanding that access to
       | photolithography machines was one of the major obstacles in
       | replicating chip manufacturing processes.
        
         | zozbot234 wrote:
         | > Could someone help contextualize what parts of this
         | manufacturing process are considered the most important and
         | closely guarded trade secrets?
         | 
         | There's _way_ too many fine details to even begin to list.
         | Modern chip fabbing is the closest thing on the planet to
         | actual dark magic, and the difficulty only rises exponentially
         | with every new fabrication node. Literally any part of this
         | could be considered a  "trade secret" if it's not already
         | described publicly as part of patents, academic research or
         | both.
        
       | epistemovault wrote:
       | So even if someone steals the secret sauce, does that mean they
       | can actually cook the same dish?
        
         | amelius wrote:
         | No, but if you want to cook the same dish it sure helps to have
         | the secret sauce.
        
       | NoMoreNicksLeft wrote:
       | Gee, I wonder which nation-state actor was orchestrating this...
        
         | bilbo0s wrote:
         | They claim it was Japan.
         | 
         | More specifically, Rapidus.
        
         | karakot wrote:
         | I always wondered - why people use a nation-state notion? Why
         | not just a state or a country? USA is not a nation-state, or
         | UK, or India, or Russia, etc. Does your question imply that
         | none of these countries are capable of orchestrating this and
         | only nation-states can do it?
        
           | matthewbauer wrote:
           | Hard to know what OP meant, but I took it as an oblique
           | reference to China.
        
             | karakot wrote:
             | Well, is China a nation-state or a multi-national state, or
             | essentially just a country(state)? English is my third
             | language, so I just wonder do I miss some nuance here.
        
           | NoMoreNicksLeft wrote:
           | New Jersey is a state. I do not think that they have the
           | wherewithal to attempt such. Scotland is a country, but I
           | don't think their occupiers would allow them to try. Granted,
           | it is an awkward term, and I too wish there was a better one.
           | 
           | >Does your question imply that none of these countries are
           | capable of orchestrating this and only nation-states can do
           | it?
           | 
           | It's not clear to me that Russia can summon the ambition. But
           | point conceded.
        
       | theodric wrote:
       | Serious props to TSMC for having the processes in place to catch
       | this or figure it out, sacking the alleged bastards, announcing
       | the insider breach publicly (and accepting the consequences of a
       | moment of corporate vulnerability, but at the same time showing
       | their transparency and commitment to protecting client IP), and
       | further not allowing mere job loss to be the end of the story. I
       | had no particular opinion about TSMC, but my respect for them has
       | moved up a notch now.
        
       | ge96 wrote:
       | My probably-racist sounding comment or nationalistic is my
       | concern for software being owned by a certain entity and then
       | this group is going to be used for the foundation of AI with our
       | military, it will be interesting to see how that turns out.
       | 
       | edit: in this case someone pointed out it's a different nation so
       | I'm surprised
        
       | quyleanh wrote:
       | They said [1] in article but put iPhone 18 chip process just for
       | clickbait... Disappointed.
       | 
       | [1] No details have been shared on the nature of the information
       | obtained. It is likely that it relates to the 2nm process in
       | general rather than anything specific to Apple's A20 chip.
        
       | amelius wrote:
       | Funny thing is that Apple doesn't know how to make an iPhone.
        
       | 0cf8612b2e1e wrote:
       | How big are all of the design files for a modern chip? 10MB?
       | 100gig? Billions of transistors, but surely a lot of compressible
       | redundancy.
       | 
       | Not that I think you can just plug in a thumb drive and download
       | as you please, but just a sense of scale on how much data
       | describes the design.
        
         | seanw444 wrote:
         | > Not that I think you can just plug in a thumb drive and
         | download as you please
         | 
         | Why not? It's just data, and a thumb drive stores data. As long
         | as it fits.
        
           | 0cf8612b2e1e wrote:
           | I meant that plugging in a thumb drive and downloading the
           | company jewels is sure to be noticed. I was hoping for
           | something a tad more clandestine. USB storage devices on my
           | corporate laptop are auto mounted as read only and need
           | policy exceptions to be able to write.
        
             | j_walter wrote:
             | This was not just from a thumb drive as that is very
             | tightly controlled at TSMC (they did catch someone right
             | away before it got leaked). The employees were caught
             | printing info and removing it from the company (caught due
             | to magnetic ink setting off the metal detectors) as well as
             | using phones to take pictures of their laptop info while
             | connecting from offsite. Taking pictures of remote laptops
             | is a more covert way, but both employees were caught
             | through suspicious pattern analysis and review of access
             | logs of people right before they quit the company.
        
           | xadhominemx wrote:
           | TSMC practices compartmentalization. The entire recipe is
           | never stored in one place.
        
       | 0xTJ wrote:
       | I'm confused about the iPhone 18 part; I assume that it would
       | just be one of their usual processes, possibly with a few tweaks.
        
         | j_walter wrote:
         | The iPhone 18 part is for clicks...it really has nothing to do
         | with the iPhone 18 and everything to do with TSMC's N2 process.
        
       | mathiaspoint wrote:
       | Hard to feel bad for Apple when a lot of this is about locking
       | customers out of their own devices and then cheaping out with
       | contract manufacturing. I almost want to cheer on the employees
       | doing this.
        
       | chasil wrote:
       | Have we topped Micron?
       | 
       | https://www.freethink.com/the-changing-world-order/chinese-i...
        
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