A hot potato: TSMC's lawsuit against its former Senior VP that claims he took trade secrets with him to Intel has taken another turn. Taiwanese prosecutors have just searched the homes of Wei-Jen Lo and seized devices as part of an investigation into the claims.
TSMC filed the lawsuit this week in the Intellectual Property and Commercial Court. The filing is based on the terms of Lo's contract with the company, including the non-compete agreement he signed, and regulations such as the Trade Secrets Act.
TSMC claims there is a high probability that Lo may use, leak, disclose, deliver, or transfer TSMC's trade secrets and confidential information to Intel, thereby making legal action necessary.
It's now been reported that Lo's residences in Taipei and Hsinchu have been searched. The prosecutors' intellectual property branch said Lo is suspected of violating Taiwan's National Security Act.
Investigators seized computers, USB drives, and other evidence during the search, prosecutors said. A court has also approved a petition to seize his shares and real estate.
According to local reports, investigators are looking into whether Lo took documents related to 2nm process development or TSMC's A14 and A16 processes when he left the company for Intel.
Taiwan Economy Minister Kung Ming-hsin said the government would closely monitor if the situation could affect Taiwan's semiconductor industry or its customer relationships. The ministry stated it will cooperate with Taiwan's High Prosecutors' Office during the investigation.
Intel CEO Lip-Bu Tan sent an internal memo to employees after the allegations against Lo became public knowledge. Tan said the company "sees no merit to the allegations," supports its employee, and stands behind its principles.
Tan added that Lo will work in Intel's manufacturing group and its packaging business, helping revitalize Intel's engineering culture.
Lo joined TSMC back in 2004 after spending 18 years at Intel – he'd run an Intel development factory in Santa Clara, California. He started at TSMC as Vice President, rising to the position of Senior Vice President.
Lo's role in advanced process development and R&D saw him lead teams responsible for thousands of patents globally. TSMC developed and rolled out multiple next-generation process nodes under his leadership. He also contributed to the strategic direction toward the 2nm node.
In August, TSMC launched legal proceedings against three people over alleged trade secret theft to help a Japanese rival.