TSMC Sues Former Executive,Alleging Intel Trade Secret Leakage
TAIPEI – Taiwan Semiconductor Manufacturing Company (TSMC) has filed a lawsuit in Taiwan alleging a former executive,believed to be Chiang Shang-yi (lo Chien-tsung),is highly likely sharing confidential information with rival Intel. The legal action, brought before Taiwan’s Intellectual Property and Commercial Court, centers on concerns that TSMC’s trade secrets are being compromised.
The dispute arrives as Intel aggressively attempts to establish itself as a major semiconductor foundry, directly competing with TSMC’s dominance. TSMC’s filing asserts a “high probability” that the former employee is “using,leaking,disclosing,delivering,or transferring TSMC’s trade secrets and confidential information to Intel.” This legal battle underscores the intense competition and high stakes within the global chip manufacturing industry, where intellectual property is paramount.
The lawsuit follows Chiang Shang-yi’s departure from TSMC to join Intel. TSMC’s complaint highlights the unusual nature of Intel’s recent decision to outsource chip production to TSMC – a departure from the American company’s long-standing practice of independent design and manufacturing. This shift, coupled with Intel’s foundry ambitions, has heightened TSMC’s sensitivity to potential intellectual property risks.
Intel has dismissed TSMC’s claims as “meritless,” arguing that the movement of personnel between semiconductor companies is a common driver of innovation. The company stated it is “confident” in its ability to operate with integrity.
TSMC is leveraging Taiwan’s Trade Secrets act in its legal strategy, a law previously used by Taiwanese prosecutors to pursue Chinese nationals suspected of stealing technology for use in mainland China. The outcome of this case could have significant implications for both companies and the broader semiconductor landscape, perhaps setting precedents for protecting intellectual property in a fiercely competitive global market.
