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When senior engineers move between rival tech giants, things can get... complicated. And that is exactly what is being seen in one of the most important IP battles in the semiconductor world.
Some background
TSMC, the world's leading chip manufacturer and a crucial supplier to companies like Nvidia and Apple, recently filed a lawsuit in Taiwan's Intellectual Property and Commercial Court. The allegations? That former Senior VP Lo Wen-jen may have taken trade secrets to his new employer, Intel, after retiring from TSMC in July.
Investigators acted swiftly
Search warrants were executed at Lo's homes in Taipei and Hsinchu, where prosecutors seized computers, USB drives and other devices. His shares and property were also temporarily frozen while the investigation continues.
Why does this matter from an IP perspective
Trade secrets are among the most valuable (and vulnerable) forms of IP. Unlike patents, they rely entirely on confidentiality. Once leaked, the competitive advantage is gone forever.
TSMC believes there is a "high probability" that Lo transferred confidential process technology relating to their advanced 3nm and 2nm development. This includes the very technologies that keep TSMC ahead in the global chip race.
Intel has strongly denied the allegations
The company says it enforces strict controls prohibiting the use of third-party IP and maintains that Lo is "widely respected" and acted with integrity. Talent mobility is common in the semiconductor sector, but the seniority of this move has elevated concerns.
The legal angle
The investigation is running on two tracks:
- Civil lawsuit by TSMC for trade-secret misappropriation;
- Criminal investigation under Taiwan's Trade Secrets Act and the National Security Act.
The involvement of Taiwan's Ministry of Economic Affairs underscores how semiconductor technology is now treated as a matter of national interest - not just corporate IP.
The conclusion
This clash is not simply about one engineer changing employers. It's a reminder of the immense value of confidential know-how in high-tech sectors, and the challenges companies face in protecting their IP when senior talent moves to competitors.
As the investigation unfolds, this case may set an important precedent for how far companies - and governments - can go to safeguard trade secrets in a world where the movement of top engineers is both inevitable and essential.
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