TSMC launches legal action after former executive joins Intel

(Sharecast News) - The Taiwan Semiconductor Manufacturing Company has launched legal action against a former senior executive after he joined US rival Intel, it was confirmed on Tuesday. In a statement to investors, TSMC said it had filed a lawsuit against Wei-Jen Lo, its former senior vice president, at Taiwan's intellectual property and commercial court.

Lo joined TSMC from Intel in 2004, becoming senior vice president a decade later.

For several years he oversaw research and development before moving in March 2024 to the firm's corporate strategy development unit.

He retired in July aged 75. During his exit interview, TSMC allege Lo said he planned to join an academic institution.

However, he instead joined Intel in October as executive vice president.

TSMC alleges: "There is a high probability that Lo uses, leaks, disclose, delivers or transfers TSMC's trade secrets and confidential information to Intel, thus making legal actions (including claiming damages for breach of contract) necessary."

It also accused Lo of convening meetings with R&D staff while working at the strategy unit, to "provide information for him to understand the advanced technologies currently, and planned to be, under development by TSMC".

TSMC said it was basing the lawsuit on Lo's contract, the non-compete agreement he signed while with the company and "regulations such as the Trade Secrets Act".

Neither Lo nor Intel have officially commented.

However, according to Bloomberg, Intel chief executive Lip-Bu Tan dismissed any suggestion Lo could share TSMC trade secrets as "rumour and speculation".

Speaking an industry event last week, he said: "There's nothing to it. We respect IP."

TSMC is the world's largest producer of chips, supplying market-leaders such as Nvidia, Broadcom and Apple.

However, the US government is looking to bolster America's domestic semiconductor industry, and in August it took a 10% equity stake in Intel as part of a $8.9bn investment.