TSMC sues Intel Executive Vice President – Alleges theft of trade secrets

TSMC sues Intel Executive President for contract violations

TSMC has confirmed that it has filed a lawsuit against Wei-Jen Lo, the company’s former Senior Vice President. After leaving TSMC, Wei-Jen Lo joined Intel as an Executive Vice President. TSMC has accused Wei-Jen Lo of violating his employment contract, a non-compete agreement, and of illegally sharing TSMC’s trade secrets.

Wei-Jen Lo is a TSMC “Superstar”. He moved from Intel to TSMC in 2004, becoming Vice President, and was promoted to Senior Vice President in 2014. He was responsible for TSMC’s advanced process node roadmap, making him a vital part of TSMC’s rise to silicon manufacturing dominance. In 2024, he was reassigned to Corporate Strategy Development, where he advised TSMC’s Chairman and CEO. During this time, Wei-Jen Lo continued to remain in contact with TSMC’s research and development teams, despite the fact that none of them were under his command anymore. It has been alleged that he used these conversations to gather information and give these trade secrets to Intel.

During his exit interview with TSMC, Lo was reminded of his non-compete obligations. He also reportedly told TSMC that he planned to join an academic institution, and made no mention of joining Intel. There are also allegations that Lo copied advanced process data before leaving TSMC and joining Intel. This data is reportedly for TSMC’s A16 and A14 process nodes.

Can Taiwanese courts do anything to Intel?

One question these events raise is whether Taiwanese courts can take action against Intel, a US company. TSMC wants the Taiwanese Intellectual Property and Commercial Court and stop wrongdoing. However, it is unclear what they can do to a US company. Can the force Lo to leave Intel? If not, can they do anything to stop potential IP theft?

While this case involves violations of the employment contract and alleged IP theft, it cannot be denied that this case has geopolitical significance. The US Government owns 10% of Intel. Furthermore, the USA’s desire for onshore semiconductor manufacturing and a strong Intel could lead it to overlook concerns raised by Taiwanese courts. So far, Intel has not commented on TSMC’s legal action against Wei-Jen Lo.

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