Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has initiated legal proceedings against one of its former top executives. The company alleges that Lo Wen-jen, who previously served as senior vice president, leaked critical trade secrets to rival Intel Corporation before joining the US chip giant.
The Legal Battle Unfolds
On November 25th, 2025, TSMC filed a formal lawsuit in the Intellectual Property and Commercial Court against Lo Wen-jen. The legal action stems from alleged violations of multiple agreements, including the Employment Contract and Non-compete Agreement signed during his tenure at TSMC. The company claims there is substantial evidence suggesting Wen-jen disclosed proprietary information to Intel.
The lawsuit specifically references the Trade Secrets Act and states that there is a high probability Lo used, leaked, or transferred TSMC's confidential trade secrets to Intel. This legal move comes after Taiwanese media reports indicated that Wen-jen might have taken sensitive information about TSMC's advanced 2nm chip manufacturing process just before his departure from the company.
Key Players and Denials
Lo Wen-jen, a 75-year-old semiconductor industry veteran, held a crucial position at TSMC before retiring in July. During his distinguished career, he oversaw research and technology development and played a pivotal role in mass-producing cutting-edge chips, including components for AI accelerators. His academic credentials include a doctorate in solid state physics and surface chemistry from UC Berkeley, and he's a laureate of Taiwan's prestigious Industrial Technology Research Institute.
Intel CEO Lip-Bu Tan has vehemently denied any wrongdoing in this matter. During an interview at the Semiconductor Industry Association Awards in San Jose, Tan dismissed the allegations as mere rumor and speculation. He emphasized that Intel respects intellectual property rights and stated categorically: There's nothing to it. We respect IP.
National Security Implications
The case has drawn attention from Taiwan's highest government officials due to potential national security concerns. Taiwan's Economic Affairs Minister Kung Ming-hsin expressed government concern about the national security implications of this case. Simultaneously, the region's National Science and Technology Council Minister Wu Cheng-wen confirmed that TSMC's internal investigation is still ongoing.
This case highlights the immense value of TSMC's chip-making technology, which represents crucial trade secrets for Taiwan. The company, now valued at over $1.15 trillion, has surpassed Intel to become the industry leader and remains the exclusive manufacturer of the most advanced chips for tech giants Apple and Nvidia.
As the legal proceedings advance, the semiconductor industry watches closely, recognizing that the outcome could set significant precedents for intellectual property protection in this highly competitive global sector. Wen-jen has yet to issue an official statement regarding the allegations.
