TSMC Files Lawsuit Against Former Executive Over Alleged Trade Secret Theft

Taiwan Semiconductor Manufacturing Co (TSMC), a global leader in chip manufacturing, has taken legal action against its former senior vice-president, Lo Wei-Jen. The lawsuit was filed in Taiwan's Intellectual Property and Commercial Court on November 25, amidst significant concerns that Mr. Lo may have transferred advanced technology data and trade secrets to his new employer, rival chipmaker Intel.

Grounds for Legal Action and TSMC's Concerns

In an official e-mailed statement, TSMC clarified that the legal proceedings are based on several key agreements and regulations. These include the terms stipulated in Mr. Lo’s employment contract, a specific non-compete agreement he signed, and provisions within Taiwan’s Trade Secrets Act. TSMC articulated its strong apprehension, stating, "There is a high probability that Lo uses, leaks, discloses or transfers TSMC’s trade secrets and confidential information to Intel, thus making legal actions necessary."

As of now, neither Intel nor Mr. Lo have issued any immediate public responses to requests for comment regarding the lawsuit.

Taiwanese Government Monitors Industry Impact

The implications of this high-stakes dispute are not going unnoticed by the Taiwanese government. The island nation's economy ministry released a statement acknowledging and respecting TSMC's decision to pursue legal action. The ministry also committed to closely monitoring the potential impact this case could have on the broader semiconductor industry. Furthermore, it pledged full cooperation to determine whether the alleged actions involve the infringement of core technologies or a violation of Taiwan’s stringent National Security Act.

Mr. Lo's Background and Key Role

Mr. Lo Wei-Jen had a distinguished 21-year career at TSMC, where he was instrumental in driving the mass production of cutting-edge chip technologies, including 5-nanometre, 3nm, and 2nm processes. He retired from TSMC in October and subsequently joined Intel. Sources familiar with the situation indicate that he now reports directly to Intel CEO Tan Lip-Bu.

The current lawsuit follows an earlier investigation initiated by Taiwan’s economy minister last week. This probe was prompted by local media reports suggesting that Mr. Lo might have taken sensitive technological information from TSMC to his new role. Interestingly, before his tenure at TSMC began in 2004, Mr. Lo spent 18 years at Intel, serving as a director of technology development and a factory manager at Intel's development facility in Santa Clara, California. This past connection adds another layer to the complex narrative surrounding the lawsuit, highlighting the fierce competition and critical importance of protecting intellectual property within the global semiconductor landscape.