Taiwan Semiconductor Manufacturing Company (TSMC) is facing a major challenge as shares dropped in pre-market trading following accusations of trade secret theft and worries about Nvidia’s business in China. The world’s largest contract chipmaker, TSMC, is battling a high-profile case of industrial espionage involving its cutting-edge 2-nanometer technology, while also grappling with export restrictions on its major customer, Nvidia. This highlights the vulnerability of Taiwan’s semiconductor industry during escalating US-China trade tensions and the critical need to protect advanced manufacturing technologies that power global AI and computing infrastructure.