TSMC's Legal Action Against Former Executive Highlights Trade Secret Concerns

The ongoing legal conflict between Taiwan Semiconductor Manufacturing Company (TSMC) and its former Senior Vice President, Lo Wei-jen, has escalated significantly. TSMC has accused Lo of leaking trade secrets to Intel Corporation, where he began working after leaving TSMC in July 2025. This situation has prompted TSMC to file a lawsuit against Lo in Taiwan's Intellectual Property and Commercial Court, citing a breach of a non-compete agreement and the potential misuse of sensitive information.

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On November 27, 2025, prosecutors conducted searches at Lo's residences in Taipei and Hsinchu, following TSMC's allegations. The searches were part of a broader investigation into whether Lo violated Taiwan's national security laws. TSMC's lawsuit asserts that there is a "high probability" that Lo disclosed TSMC's confidential information to Intel, necessitating legal action to protect its trade secrets. The company emphasized the strategic importance of its data and fabrication techniques, which are critical to Taiwan's geopolitical standing and economic security.

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In response to the allegations, Intel has firmly denied any wrongdoing, stating, "Based on everything we know, we have no reason to believe there is any merit to the allegations involving Mr. Lo." The company highlighted its rigorous policies against the misuse of confidential information and expressed confidence in Lo's integrity and expertise. TSMC, on the other hand, has stated that it will collaborate with local prosecutors to investigate the potential infringement of its core technologies.

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Critics of TSMC's actions argue that the lawsuit may reflect broader tensions within the semiconductor industry, particularly as companies compete for talent and technology. Some industry experts suggest that such legal disputes could stifle innovation and collaboration in a sector that thrives on talent mobility. Additionally, there are concerns about the implications of this case for Taiwan's semiconductor industry, which is already under scrutiny due to geopolitical pressures.

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While TSMC claims that Lo may have taken proprietary knowledge before his departure, there are no confirmed reports detailing the specific information allegedly leaked. Furthermore, the extent of the investigation's findings remains unclear, as local prosecutors have not released detailed information regarding their inquiries.

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• “There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade secrets and confidential information to Intel, thus making legal actions (including claiming damages for breach of contract) necessary,” — TSMC Statement

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• “We take these commitments seriously,” — Intel Statement

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• “Talent movement across companies is a common and healthy part of our industry, and this situation is no different,” — Intel Statement

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This legal battle underscores the complexities and sensitivities surrounding trade secrets in the semiconductor industry, particularly as TSMC seeks to protect its competitive edge in a rapidly evolving technological landscape.

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