Former TSMC VP's Residence Searched Amidst Allegations of Leaking Trade Secrets to Intel
In a significant development within the fiercely competitive semiconductor industry, authorities in Taiwan have reportedly executed search warrants at the residences of a former senior executive of Taiwan Semiconductor Manufacturing Co. (TSMC). This action comes after TSMC accused the individual of potentially compromising highly sensitive proprietary information to Intel Corp. The investigation underscores the intense rivalry and the critical importance of intellectual property in the global technology landscape.
Taiwanese prosecutors, specializing in intellectual property, recently conducted raids on two properties linked to Wei-Jen Lo, who previously held a Vice President position at TSMC before transitioning to Intel in October. During these searches, various electronic storage devices, including computers and USB drives, were confiscated. These items are being held as potential evidence in an ongoing probe into alleged trade secret violations.
According to official statements, Lo is suspected of contravening Taiwan's National Security Act, a legal framework designed to safeguard technologies deemed strategically vital to the nation's economic interests. Furthermore, a court has sanctioned a request to freeze Lo's assets, specifically his shares and real estate, pending the resolution of the investigation. This measure highlights the seriousness with which these allegations are being treated.
TSMC initiated legal proceedings earlier in the week, asserting that there was a 'strong likelihood' that Lo either utilized or disclosed confidential information belonging to the company. The semiconductor giant's claims specifically point to sensitive details pertaining to its cutting-edge 5-nanometer, 3-nanometer, and 2-nanometer chip manufacturing processes. These processes are at the forefront of semiconductor technology, providing a critical competitive edge in the global market.
The company stated that legal intervention became necessary due to the potential transfer of what it termed 'confidential information' to Intel. Lo had a long tenure at TSMC, spanning 21 years, where he was instrumental in the large-scale production of its most advanced chip nodes. Interestingly, prior to joining TSMC in 2004, he had also worked at Intel for 18 years, adding a layer of complexity to the current dispute.
Intel, in response to these serious accusations, has vociferously denied any wrongdoing. The company affirmed that an internal review found no basis to believe the allegations held merit. Intel also underscored that the movement of employees between rival chip manufacturers is a routine and healthy practice within the industry, suggesting that Lo's transition was not unusual.
This ongoing investigation unfolds at a pivotal time for Intel, as its CEO, Lip-Bu Tan, is actively pursuing a strategic turnaround for the company. This strategy focuses on refining engineering priorities, accelerating advancements in artificial intelligence, and revitalizing its foundry operations to narrow the technological gap with TSMC. TSMC currently holds a dominant position in advanced chip production, supplying key players like Nvidia Corp. and Apple Inc.
This case serves as a stark reminder of the intense competition and the paramount importance of safeguarding intellectual property within the high-stakes semiconductor industry. The outcome of the investigation will undoubtedly have significant ramifications for both TSMC and Intel, potentially influencing future talent mobility and the protection of technological innovations across the sector.