Taiwanese prosecutors on Monday indicted a former deputy manager at Taiwan Semiconductor Manufacturing Company (TSMC) for allegedly stealing trade secrets involving technologies designated as national core technologies, with the intent to use them in China.
The defendant, identified by the surname Chen, faces charges under Taiwan’s National Security Act and the Trade Secrets Act. Prosecutors are seeking a seven-year prison sentence.
According to the indictment, Chen conspired with a Hong Kong national between 2023 and 2024 to establish CSMAC, a semiconductor materials analysis company in China. He is accused of copying 21 TSMC documents containing national core technologies and other proprietary trade secrets for use in the new venture.
TSMC, the world’s largest contract chipmaker and a key supplier to companies such as Nvidia and Apple, detected the unauthorized copying through an internal investigation and successfully recovered all duplicated documents. The Hong Kong co-conspirator was not prosecuted because he had died. Chen remains in custody, and Reuters was unable to reach him for comment. TSMC declined to comment on the case.
Prosecutors described this as Taiwan’s first indictment involving the alleged theft of trade secrets related to technologies officially designated as national core technologies for intended use in China.
The case underscores heightened concerns in Taiwan over China’s efforts to recruit Taiwanese semiconductor talent and acquire advanced chip know-how. In response, Taiwan has significantly tightened protections for technologies deemed critical to its economic and national security.
MacDailyNews Take: TSMC clearly plays a central role in the global semiconductor supply chain, making the protection of its intellectual property a matter of strategic importance far beyond Taiwan’s borders.
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A CP – Comboios de Portugal lançou um projeto-piloto com tecnologia Starlink num Alfa Pendular, inserindo-se numa vaga global que já transformou a conectividade em dezenas de companhias aéreas e operadores ferroviários europeus.
Welcome to this week’s installment of The Intelligence Brief… in a recent sworn statement, it was revealed that the Pentagon has reportedly leveraged Elon Musk’s xAI to assist in the launch of as many as 2,000 munitions in the recent U.S. war with Iran. In our coverage, we’ll be looking at 1) how the recent revelations were brought to light in a lawsuit focused on possible violations of the Clean Air Act, 2) how a “frontier” AI chatbot became key part of the Pentagon’s military efforts, and 3) why lawmakers are sounding alarms over the potential misuse of AI systems, and the need for ensuring their safe use while restricting major decisions to human operators.
Quote of the Week
“We must act now—not to stifle technological progress, but to establish clear rules of the road that keep humans in charge and keep AI’s use in warfare smart and safe.”
– U.S. Senator Kirsten Gillibrand
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Musk’s AI Chatbot Helped U.S. Forces Fire Missiles
This week, as an initial deal aiming to end the U.S. war with Iran comes to fruition, it was revealed that thousands of missiles launched by the U.S. were fired by Elon Musk’s Grok chatbot.
The revelation emerged as part of a sworn statement pushing to protect the military’s use of Musk’s AI systems that could be impacted by a lawsuit, which alleges his xAI data centers are contributing to illegal pollution in black communities.
The statement, made by Cameron Stanley, the Pentagon’s chief digital and artificial intelligence officer, states that Musk’s AI chatbot helped to facilitate the deployment of “over 2,000 munitions to 2,000 distinct targets within 96 hours during Operation Epic Fury,” which Stanley called “a testament to the greatly increased operational efficiency made possible by the Grok Gov Model.”
A “Frontier” AI Chatbot
In Stanley’s sworn statement this week, the Pentagon official tasked with overseeing the Department of War’s use of AI wrote that xAI’s Grok is one of just four proprietary AI models “capable of supporting national security applications.”
Stanley wrote that xAI also “remains one of just three enterprise providers equipped to sustain mission-critical operations across Secret and Top-Secret classified networks for the foreseeable future due to the enormous resources required for initial certification.”
“DoW currently relies on derivatives of xAl’s commercial offerings known as the Grok Gov Model,” according to Stanley, who goes on to note in his statement that the AI chatbot has been deployed in systems that include Maven Smart Systems, where it assists in supporting “vital national security missions, including targeting, intelligence, readiness, and recruitment,” and also aids in a range of other military tasks.
“The Grok Gov Model offers features unique to xAI that are found in no other frontier Al model,” Stanley wrote. As an illustration of its capability, Stanley then made the chilling revelation of just how involved in military activities the xAI chatbot has recently become.
Grok Goes to War
“To further illustrate the uses of the Grok Gov Model within DoW, MSS frontier workflows enabled U.S. forces to deploy over 2,000 munitions to 2,000 distinct targets within 96 hours during Operation Epic Fury, a testament to the greatly increased operational efficiency made possible by the Grok Gov Model,” Stanley wrote in his testimony.
As reported by The Independent, the sworn statement provided by Stanley appears to represent the first confirmation by an official within the Trump Administration that Elon Musk’s AI is being used to control U.S. weapons used against Iran.
Since the conflict began in February, the Trump administration has faced scrutiny over U.S.-led attacks that have resulted in civilian deaths, with mounting questions over the military’s use of AI during the conflict.
In an analysis by the Lieber Institute at West Point, Jessica Dorsey and Luke Moffett noted that AI systems “are frequently framed as ushering in an era of unprecedented precision and efficiency in warfare,” but in reality, issues that include recent figures involving as many as 1,700 civilian deaths as of May 2026 “calls that narrative into serious question.”
“CENTCOM claimed it was generating 1,000 targets per hour,” Moffett and Dorsey wrote, adding that while “such capabilities are often framed as enhancing precision… they also introduce new layers of abstraction between decision-makers and the consequences of their actions.”
Pending Court Rulings Could Impact the Pentagon’s AI Use
The U.S. Department of Justice has argued that a pending court ruling could significantly impact the Pentagon’s use of AI if it is prevented from deploying xAI across its systems.
In an effort to prevent such setbacks, the Trump administration has requested that a lawsuit launched by the NAACP be dismissed by a Mississippi-based federal judge. The lawsuit claims that Musk’s xAI Colossus 2 data center, which relies on several dozen gas-powered turbines, is operating in violation of the Clean Air Act. Presently, the turbines are being operated without permits, the lawsuit asserts.
In his sworn statement this week, Stanley called Musk’s xAI systems a “long-term strategic tool vital to maintaining our technological advantage against adversaries.”
However, opponents of such measures in Washington argue that new regulations must help to ensure that crucial military decisions—especially those which impact human lives—must also be made by humans.
“The most critical decisions affecting our national security and the lives of our service members must always be made by human beings, not unaccountable machines,” wrote U.S. Senator Kirsten Gillibrand (D, NY) in a statement earlier in June.
Gillibrand also recently introduced a bill that aims to restrict military decisions that could potentially impact human lives to human operators, and to implement a ban on AI in governing the use of nuclear weapons, as well as autonomous weapons capabilities and domestic surveillance.
In her statement this month, Gillibrand argued that the Pentagon “is moving toward deploying incredibly powerful AI technology without commonsense guardrails in place, which could have catastrophic consequences that make all of us less safe.”
“We must act now—not to stifle technological progress, but to establish clear rules of the road that keep humans in charge and keep AI’s use in warfare smart and safe,” Gillibrand added.
The US Department of Justice has asked a federal court to throw out a Clean Air Act lawsuit against Elon Musk’s xAI, arguing that the company’s unpermitted gas turbines near Memphis are a matter of “national, economic, and energy security.”
The move puts the Trump administration in court alongside Musk to defend dozens of methane-burning turbines that have been running without air permits in one of the most polluted regions of the country.
The Trump administration is trying to help Elon Musk's xAI Corp. beat a Clean Air Act lawsuit filed by the National Association for the Advancement of Colored People (NAACP). The US said the NAACP lawsuit threatens an xAI data center that powers Grok systems needed by the military.
The NAACP sued xAI and subsidiary MZX Tech in April, alleging that they violated the Clean Air Act by operating 27 gas turbines without an air permit in Southaven, Mississippi. The number of unpermitted turbines rose to 57 by mid-May and there were plans to install two more, the NAACP said in a June 12 filing.
"Defendants’ Colossus Gas Plant powers xAI’s nearby Colossus 2 data center, which in turn powers the chatbot 'Grok,'" the lawsuit said. The gas turbines have fueled both health concerns and noise complaints.
A so-called software supply chain attack, in which hackers corrupt a legitimate piece of software to hide their own malicious code, was once a relatively rare event but one that haunted the cybersecurity world with its insidious threat of turning any innocent application into a dangerous foothold in a victim’s network. Now one group of cybercriminals has turned that occasional nightmare into a near-weekly episode, corrupting hundreds of open source tools, extorting victims for profit, and sowing a new level of distrust in an entire ecosystem used to create the world’s software.
On Tuesday night, open source code platform GitHub announced that it had been breached by hackers in one such software supply chain attack: A GitHub developer had installed a “poisoned” extension for VSCode, a plug-in for a commonly used code editor that, like GitHub itself, is owned by Microsoft. As a result, the hackers behind the breach, an increasingly notorious group called TeamPCP, claim to have accessed around 4,000 of GitHub’s code repositories. GitHub’s statement confirmed that it had found at least 3,800 compromised repositories while noting that, based on its findings so far, they all contained GitHub’s own code, not that of customers.
“We are here today to advertise GitHub’s source code and internal orgs for sale,” TeamPCP wrote on BreachForums, a forum and marketplace for cybercriminals. “Everything for the main platform is there and I very am happy to send samples to interested buyers to verify absolute authenticity.”
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