Intel denies TSMC trade secret allegations against executive

 

Intel denies TSMC trade secret allegations against executive

Intel has denied allegations by Taiwan Semiconductor Manufacturing Co. that one of its executives leaked trade secrets after joining the chipmaker from TSMC, dismissing claims in a high-stakes legal battle that has drawn scrutiny from Taiwanese authorities.

"Intel maintains rigorous policies and controls that strictly prohibit the use or transfer of any third-party confidential information or intellectual property," the company said in a statement. "Based on everything we know, we have no reason to believe there is any merit to the allegations involving Mr. Lo."​

The denial comes two days after TSMC filed a lawsuit in Taiwan's Intellectual Property and Commercial Court against Wei-Jen Lo, a former senior vice president who retired in July after 21 years at the Taiwanese chipmaker and subsequently joined Intel as executive vice president. TSMC alleges there is a "high probability" that Lo transferred confidential information about its advanced 2-nanometer, A16, and A14 chip processes to Intel.​

Allegations and Background

TSMC's lawsuit, based on Lo's employment contract, non-compete agreements, and Taiwan's Trade Secrets Act, centers on the executive's conduct before his departure. The company claims that despite being reassigned to a corporate strategy role in March 2024—a position that did not oversee research and development—Lo continued meeting with R&D staff and requesting reports on technologies under development.​

According to TSMC, Lo told the company's general counsel during his July exit interview that he planned to join an academic institution and did not mention plans to work for Intel. Lo, 75, was instrumental in TSMC's development of cutting-edge 5-nanometer, 3-nanometer, and 2-nanometer manufacturing processes during his tenure.

National Security Concerns

Taiwan's Ministry of Economic Affairs said it would "closely monitor any impact on the industry" and cooperate with prosecutors to determine whether the case involves violations of Taiwan's National Security Act. The ministry's statement underscores the strategic importance of semiconductor technology to Taiwan's economy and national security.​

Intel CEO Lip-Bu Tan previously addressed the allegations last week at the Semiconductor Industry Association Awards, calling them "rumor and speculation" and emphasizing that Intel respects intellectual property rights. The case highlights intensifying competition between the two chipmakers as Intel works to regain its manufacturing edge while TSMC maintains its dominance in producing the world's most advanced semiconductors for clients including Nvidia and Apple.​

Next Post Previous Post