TLDR
- TSMC filed a lawsuit against former senior VP Wei-Jen Lo in Taiwan’s Intellectual Property and Commercial Court over trade secret concerns.
- Lo retired from TSMC in July after 21 years and joined Intel in October, reporting directly to CEO Lip-Bu Tan.
- TSMC alleges Lo held meetings with R&D staff to learn about technologies under development after transferring to a different department in March 2024.
- Lo helped drive TSMC’s mass production of cutting-edge 5nm, 3nm, and 2nm chips during his tenure.
- Taiwan’s economy ministry is investigating whether the case involves infringement of core technologies or violations of the National Security Act.
TSMC filed a lawsuit Tuesday against Wei-Jen Lo, a former senior vice president who recently joined Intel. The case centers on concerns that Lo could share critical chipmaking secrets with his new employer.
The lawsuit was filed in Taiwan’s Intellectual Property and Commercial Court. TSMC claims there is a high probability Lo could use, leak, or transfer the company’s trade secrets and confidential information to Intel.
Lo spent 21 years at TSMC after joining in 2004. He was promoted to senior vice president in 2014 and played a key role in the company’s research and development of advanced technologies.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The executive retired from TSMC on July 27 and joined Intel in October. A source familiar with the matter said Lo now reports directly to Intel CEO Lip-Bu Tan.
Questionable Meetings Before Departure
TSMC’s complaint focuses on Lo’s actions after a March 2024 transfer. He moved to the Corporate Strategy Development department but allegedly held meetings with staff from the R&D unit.
These meetings covered technologies still under development. Lo wasn’t responsible for supervising those employees at the time.
The chipmaker says Lo signed both noncompete and nondisclosure agreements during his employment. The lawsuit cites these contracts along with Taiwan’s Trade Secrets Act as the basis for legal action.
High Stakes in Chip Manufacturing Race
Lo worked on some of TSMC’s most advanced manufacturing processes. He helped drive mass production of cutting-edge 5-nanometre, 3-nm, and 2-nm chips.
These technologies represent the forefront of semiconductor manufacturing. TSMC currently dominates the global market for making advanced chips.
Intel has been trying to compete in the foundry business. This involves producing semiconductors for third-party companies.
Before his two decades at TSMC, Lo actually worked at Intel for 18 years. He served as a director of technology development and ran Intel’s development facility in Santa Clara, California.
Government Scrutiny and Investigation
Taiwan’s economy ministry issued a statement respecting TSMC’s legal action. The ministry said it will closely monitor the impact on the industry.
The government is also investigating whether the case involves infringement of core technologies. Officials are checking for potential violations of Taiwan’s National Security Act.
Last week, Taiwan’s economy minister confirmed authorities were investigating Lo. Local media had reported he may have taken TSMC’s advanced technology data to Intel.
Intel and Lo have not responded to requests for comment about the lawsuit. The case puts a spotlight on the fierce competition in the semiconductor industry and the value of proprietary manufacturing knowledge.
Taiwan’s economy ministry said it will cooperate to determine the full scope of any potential violations. The investigation continues as the lawsuit moves forward in Taiwan’s specialized intellectual property court.
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