TSMC files lawsuit against former executive on security concerns

This photo shows the logo of TSMC (Taiwan Semiconductor Manufacturing Company) during the Taiwan Innotech Expo at the World Trade Center in Taipei, Taiwan, Oct. 14, 2022. (AP Photo/Chiang Ying-ying, File)

TAIPEI — Taiwan Semiconductor Manufacturing Co. said on Tuesday it had filed a lawsuit in Taiwan’s Intellectual Property and Commercial Court against its former Senior Vice President Wei-Jen Lo, who recently joined Intel.

In an emailed statement, TSMC said the lawsuit is based on the terms of the employment contract between TSMC and Lo, the non-compete agreement signed by Lo, and regulations such as the Trade Secrets Act.

“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,” TSMC said.

Intel and Lo did not immediately respond to requests for comment.

Taiwan’s economy ministry said in a statement that it respects TSMC’s legal action and will closely monitor the impact on the industry. The ministry added that it will cooperate to determine whether the case involves the infringement of core technologies or violations of Taiwan’s National Security Act.

Last week, Taiwan’s economy minister said authorities were investigating Lo after local media reported that he may have taken TSMC’s advanced technology data to his new employer.

Lo, who helped drive TSMC’s mass production of cutting edge 5-nanometre, 3-nm and 2-nm chips, joined Intel in October after retiring from TSMC following a 21-year-long career there. A source familiar with the matter said he reports directly to Intel CEO Lip-Bu Tan.

Before joining TSMC in 2004, Lo worked at Intel for 18 years. He served as a director of technology development and was a factory manager, running Intel’s development facility in Santa Clara, California.

(Reporting by Ben Blanchard and Wen-Yee Lee; Editing by Jan Harvey, Kirsten Donovan)