TSMC sues ex-executive over Intel

Taiwan Semiconductor Manufacturing Co. (TSMC) has initiated legal action against a former senior vice president, alleging a high probability that he leaked trade secrets to Intel after joining the company in October. The lawsuit, filed in Taiwan's Intellectual Property and Commercial Court, cites violations of the Trade Secrets Act, employment contract terms, and non-compete agreements.

TSMC's filing claims that the executive, Wei-Jen Lo, gathered information about advanced technologies under development despite his role not directly involving R&D oversight. Following his departure from TSMC in July, Lo stated he planned to join an academic institution. TSMC argues that Lo's move to Intel creates a significant risk of trade secret misappropriation, potentially impacting TSMC's competitive edge in advanced semiconductor manufacturing. Prior to joining TSMC in 2004, Lo worked at Intel for 18 years.

Intel denies the allegations, with CEO Lip-Bu Tan dismissing them as rumour and speculation. However, Taiwanese authorities have launched their own investigation, with prosecutors seizing digital devices from Lo's residences. The case raises concerns about potential national security implications and the protection of intellectual property within the semiconductor industry.