Taiwanese chip giant TSMC took major legal action on Tuesday, filing a lawsuit against Wei-Jen Lo, a former senior vice president at the company. TSMC claims that Lo, who recently joined Intel, leaked confidential information to his new employer.
The dispute centers on Lo’s departure from TSMC in July after 21 years with the company. According to TSMC, Lo did not leave quietly. The company accuses him of violating his employment contract and breaching his non-compete agreement. They also cited Taiwan’s Trade Secrets Act as a basis for the lawsuit. TSMC’s legal team stated they believe there is a “high probability” that Lo is actively using, disclosing, or transferring their trade secrets to Intel right now.
This legal move confirms earlier whispers in the industry. Local media outlets and Reuters previously reported suspicions that Lo took sensitive technology data with him when he jumped ship. These allegations were serious enough that Taiwan’s High Prosecutors opened their own investigation.
Intel, however, is pushing back. Last week, Intel CEO Lip-Bu Tan addressed the rumors in an interview with Bloomberg News. He denied any wrongdoing and insisted that his company strictly respects intellectual property rights.
The market did not react well to the escalating tension between the two tech heavyweights. Following the news of the lawsuit, investors pulled back, sending TSMC’s share price down by more than 3%. Intel also saw a dip, with its stock falling 1.5% during mid-morning trading.
This lawsuit highlights the fierce nature of the semiconductor industry, where proprietary technology is the most valuable asset a company owns. When a high-ranking executive moves directly to a main rival, it often triggers alarm bells. TSMC is clearly signaling that it will aggressively protect its data, while the courts must now determine if Lo actually crossed the line from a career move to corporate theft.
