TSMC has initiated legal action against Wei-Jen Lo, a former senior vice president, over alleged breaches of contract and potential trade secret misappropriation following his move to Intel as an executive vice president. The lawsuit, filed in the Intellectual Property and Commercial Court, centres on Lo's alleged violation of non-disclosure and non-compete agreements signed during his tenure at TSMC. TSMC claims there is a high probability that Lo may use or disclose the company's trade secrets to Intel.
TSMC's statement highlights that despite a reassignment in March 2024, which removed Lo from direct involvement in R&D, he allegedly continued to engage with R&D teams. This engagement, combined with his subsequent move to Intel, has raised concerns that he may be in a position to transfer TSMC's confidential information. TSMC is pursuing legal avenues, including claiming damages for breach of contract. Prior to joining Intel, Lo had told TSMC's legal counsel that he was planning to join an academic institution.
The lawsuit coincides with a probe by Taiwanese prosecutors into the possible leak of TSMC's advanced chipmaking technology. The Ministry of Economic Affairs is monitoring the situation for any industry impact. Intel's CEO has denied any knowledge of wrongdoing.
