Taiwan prosecutors said on Thursday investigators had searched the residences of a former senior TSMC executive and confiscated computers after the company accused him of leaking trade secrets, which his current employer Intel (INTC.O), opens new tab has denied.
TSMC (2330.TW), opens new tab, the world's largest contract chipmaker and key supplier to firms such as Nvidia (NVDA.O), opens new tab, said on Tuesday it had filed a lawsuit in Taiwan's Intellectual Property and Commercial Court against Wei-Jen Lo, its former senior vice president.
In a statement, Taiwan prosecutors' intellectual property branch said Lo is suspected of breaching Taiwan's National Security Act. Investigators on Wednesday afternoon executed search warrants at two of Lo's residences, seizing computers, USB drives and other evidence, prosecutors said.
A court also sanctioned a request to confiscate his shares and property, the statement said. Lo and Intel did not immediately respond to a request for comment. Intel rejected TSMC's claims on Thursday.
Intel said the company has strong policies and controls in place that prohibit the use or transfer of any third-party confidential information or intellectual property. "We stand by these commitments," Intel said.
The U.S. chipmaker said it has brought back Lo and that he is well-regarded in the semiconductor industry for his integrity, leadership and technical acumen. "Talent mobility between companies is a normal and healthy part of our industry, and this is no exception," the company said.
Lo, who spearheaded TSMC's mass production of 5-nanometre, 3-nm and 2-nm chips, joined Intel in October after retiring from TSMC after a 21-year stint. Prior to TSMC, Lo spent 18 years at Intel before joining TSMC in 2004. TSMC said in a statement that "there is a high likelihood that Lo uses, leaks, discloses or transfers TSMC's trade secrets and confidential information to Intel, thus necessitating legal action".
