TSMC Sues Former Executive Over Trade Secret Risks
- Case raises concerns about technology transfer to Intel
Taiwan Semiconductor Manufacturing Co (TSMC) announced on Tuesday that it has filed a lawsuit against its former Senior Vice President Wei-Jen Lo. The case was submitted to Taiwan’s Intellectual Property and Commercial Court and is based on Lo’s employment contract, a non-compete agreement, and the country’s Trade Secrets Act. TSMC stated there is a high probability that Lo could disclose or transfer confidential information to Intel, his new employer. Neither Intel nor Lo has yet responded to requests for comment.
Government Monitoring the Case
Taiwan’s economy ministry said it respects TSMC’s legal action and will closely monitor the case’s impact on the semiconductor industry. Officials added they will cooperate to determine whether the matter involves infringement of core technologies or violations of the National Security Act. The ministry had already launched an investigation after local media reported that Lo may have taken advanced technology data to Intel. Authorities are treating the issue as a potential national security concern given the strategic importance of semiconductor manufacturing.
Lo retired from TSMC earlier this year after a 21-year career, during which he played a key role in mass production of advanced 5-nanometre, 3-nm, and 2-nm chips. He joined Intel in October and reportedly reports directly to CEO Lip-Bu Tan. Before his time at TSMC, Lo spent 18 years at Intel, serving as director of technology development and managing its Santa Clara facility. His long experience at both companies has raised questions about the potential transfer of sensitive expertise.
Industry Implications
TSMC is the world’s largest contract chipmaker and a critical supplier for global technology firms. Protecting trade secrets is seen as vital to maintaining its competitive edge in advanced semiconductor production. The lawsuit highlights the growing tension between safeguarding intellectual property and the mobility of senior executives in the industry. Analysts note that the case could set an important precedent for how Taiwan handles disputes involving technology transfer risks.
The semiconductor sector is already under pressure from geopolitical competition and supply chain disruptions. Any breach of trade secrets could have significant consequences for both national security and global markets. Taiwan’s government has signaled its willingness to intervene if core technologies are at stake. The outcome of the case may influence future policies on executive mobility and corporate confidentiality.
Broader Context
The dispute comes at a time when global semiconductor competition is intensifying, with companies racing to produce ever-smaller and more efficient chips. TSMC’s leadership in advanced nodes has made it a strategic asset for Taiwan and its allies. Intel, meanwhile, is seeking to regain ground in cutting-edge manufacturing after years of lagging behind rivals. The lawsuit underscores the delicate balance between talent acquisition and protection of proprietary knowledge.
TSMC’s 5-nanometre process technology, which Lo helped bring into mass production, is used in many flagship smartphones and high-performance computing devices worldwide. This node marked a major leap in efficiency and performance, reinforcing TSMC’s dominance in the global semiconductor market.
