TLDR
- Taiwan prosecutors raided two homes of former TSMC executive Wei-Jen Lo, seizing computers and USB drives over alleged trade secret leaks to Intel
- TSMC filed a lawsuit claiming Lo leaked confidential information about 5nm, 3nm, and 2nm chip production technology to his new employer Intel
- Lo is suspected of violating Taiwan’s National Security Act, with authorities securing court approval to seize his shares and real estate
- Intel denied all allegations, stating Lo’s hiring is normal industry talent movement and maintains strict policies against using third-party IP
- TSMC stock remained flat following the news while analysts maintain a Strong Buy rating with upside potential above 20%
Taiwan Semiconductor Manufacturing Company faces a brewing legal battle after authorities raided the homes of a former senior executive accused of stealing trade secrets for Intel.
Taiwanese prosecutors executed search warrants at two properties belonging to Wei-Jen Lo on Wednesday afternoon. Investigators confiscated computers, USB drives, and other digital evidence as part of the probe.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Lo spent 21 years at TSMC before retiring in June. He joined Intel in October as head of research and development. The 75-year-old executive previously worked at Intel for 18 years before his long tenure at the Taiwan-based chipmaker.
TSMC filed its lawsuit on Tuesday in Taiwan’s Intellectual Property and Commercial Court. The company claims there is a high probability Lo leaked confidential information to his new employer.
The alleged trade secrets involve cutting-edge chip manufacturing processes. Lo helped drive TSMC’s mass production of 5-nanometer, 3-nanometer, and 2-nanometer chips during his time at the company.
Prosecutors suspect Lo violated Taiwan’s National Security Act. A Taiwanese court approved requests to seize his shares and real estate holdings in the country.
Intel Pushes Back on Allegations
Intel released a statement Thursday denying any wrongdoing. The company said it has no reason to believe the allegations against Lo have merit.
“We maintain rigorous policies and controls that strictly prohibit the use or transfer of any third-party confidential information or intellectual property,” Intel stated. The chipmaker characterized Lo’s hiring as normal talent movement within the semiconductor industry.
Intel emphasized Lo’s reputation across the sector. The company described him as widely respected for his integrity, leadership, and technical expertise.
Stock Market Reaction
TSMC shares traded almost flat Thursday morning following news of the raids. The stock showed minimal movement despite the legal drama unfolding in Taiwan.
Wall Street analysts maintain a Strong Buy rating on Taiwan Semiconductor stock. Eight analysts rate it a Buy while one recommends Hold based on recent reviews.
The average price target sits at $348.25 per share. This represents potential upside of more than 20% from current trading levels.
The legal dispute comes as Taiwan works to navigate potential trade tensions. President Donald Trump’s administration has discussed possible tariffs on semiconductor imports.
TSMC serves as the world’s largest contract chipmaker. The company manufactures chips for major tech firms including Nvidia and Apple.
Both Lo and Intel have not provided additional comments beyond Thursday’s denial. Prosecutors continue their investigation into the alleged trade secret violations.
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