Two former employees of Taiwan Semiconductor Manufacturing (TSM) and a third individual have been arrested for allegedly unlawfully obtaining trade secrets from the company, several media outlets reported Tuesday, citing Taiwanese prosecutors.

Former company employees are suspected of having attempted to gain proprietary data on 2-nanometer chip development and production while they were still employed, Nikkei Asia reported.

An internal investigation conducted by the company found that the suspected individuals were part of "potential trade secret leaks," according to the Financial Times.

In response to the allegations against its former employees, the company told media outlets that "TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company's interests."

Taiwan Semiconductor didn't immediately respond to MT Newswires' request for comment.