Taiwan Semiconductor Drags Ex-VP To Court Over Intel Move

Contract chipmaker Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) has filed a lawsuit against its former Senior Vice President Wei-Jen Lo in Taiwan’s Intellectual Property and Commercial Court, after he recently joined chipmaking rival Intel Corp. (NASDAQ:INTC).

The Taiwanese chipmaker said in an emailed statement to Reuters that it based the lawsuit on Lo’s employment contract, his signed non-compete agreement, and legal frameworks, including Taiwan’s Trade Secrets Act.

Taiwan Semiconductor stated that Lo poses “a high probability” of using, leaking, disclosing, or transferring the chipmaker’s confidential information and trade secrets to Intel, prompting the need for legal action.

Also Read: Pegatron Chair Calms Taiwan Semiconductor Leak Drama, Says Chip Rivalry Can’t Steal Its Edge

Taiwan’s economy ministry said it respects Taiwan Semiconductor’s legal move and will monitor any potential impact on the semiconductor industry, adding that it will help determine whether the case involves core technology theft or violations of the National Security Act.

Intel’s Rebuttal to Trade-Secret Concerns

Last week, Intel CEO Lip-Bu Tan rejected claims that Lo brought Taiwan Semiconductor trade secrets to Intel, calling the reports rumors and speculation while stressing the company’s respect for intellectual property.

Taiwanese authorities already launched an investigation last week following reports that Lo may have taken advanced Taiwan Semiconductor technology data to Intel.

Lo joined Intel in October after a 21-year career at Taiwan Semiconductor, where he played a key role in ramping mass production of cutting-edge 5-nanometer, 3-nm, and 2-nm chips. Reportedly, Lo now reports directly to Tan.

Lo previously worked at Intel for 18 years before joining Taiwan Semiconductor in 2004, including roles in technology development and as a factory manager at the company’s Santa Clara, California, development facility.

The investigation comes as Tan drives Intel’s turnaround by tightening engineering focus, ramping AI efforts, and rebuilding its foundry business to close the gap with Taiwan Semiconductor — which continues to dominate advanced chip manufacturing for Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).

Price Actions: TSM stock was trading lower by 1.80% to $279.60 at last check Tuesday. INTC was down 0.11%.

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