Taiwanese prosecutors have raided the home of a former TSMC executive amid allegations of trade secrets leakage, leading to a lawsuit filed by the semiconductor giant.
Taiwan prosecutors announced on Thursday that investigators have conducted a raid on the home of Wei-Jen Lo, a former senior vice president of Taiwan Semiconductor Manufacturing Company (TSMC). This action follows allegations that Lo was leaking trade secrets to Intel, a major competitor in the semiconductor industry.
TSMC, the world’s largest contract chipmaker and a key supplier to companies such as Nvidia, has initiated legal proceedings against Lo in Taiwan’s Intellectual Property and Commercial Court. The lawsuit underscores the seriousness of the allegations, which TSMC claims involve the unauthorized sharing of sensitive company information.
Lo, who retired from TSMC in July after more than two decades with the company, held the position of senior vice president of corporate strategy development. During his tenure, he was instrumental in advancing TSMC’s cutting-edge technology. Following his retirement, he was hired by Intel as vice president of research and development.
In response to the allegations, Intel has firmly denied any wrongdoing. CEO Lip Bu-Tan characterized the claims as “rumors and speculation,” asserting that the company adheres to strict policies that prohibit the use or transfer of third-party confidential information or intellectual property.
The Taiwan prosecutors’ intellectual property branch issued a statement indicating that Lo is suspected of violating Taiwan’s National Security Act. As part of the investigation, authorities executed a search warrant at two of Lo’s residences on Wednesday. The court has also approved a petition to seize his shares and real estate, further complicating his legal situation.
Before his long tenure at TSMC, Lo worked for Intel, where he focused on advanced technology development and managed a chip factory in Santa Clara, California. Intel has expressed its commitment to maintaining rigorous controls over confidential information and has welcomed Lo back into the industry, highlighting his reputation for integrity and technical expertise.
“Talent movement across companies is a common and healthy part of our industry, and this situation is no different,” Intel stated, emphasizing its respect for Lo’s contributions to the field.
TSMC has expressed concerns about the potential misuse of its trade secrets, stating that there is a “high probability” that Lo has used, leaked, or disclosed confidential information to Intel. This situation has intensified the ongoing tensions between the two companies, particularly as Intel seeks to regain its footing in the competitive technology landscape.
As the investigation unfolds, the implications for both TSMC and Intel could be significant, particularly in light of the current global semiconductor market dynamics. The outcome of this case may influence not only the companies involved but also the broader industry, as trade secrets and intellectual property continue to be critical assets in the technology sector.
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