Beijing E-Town Semiconductor Technologies, a Chinese manufacturer of semiconductor equipment supported by the local government, has filed a lawsuit against Applied Materials, a leading American chip manufacturing equipment company. The legal action, registered with the Beijing Intellectual Property Court, accuses Applied Materials of misappropriating trade secrets related to critical plasma technologies and wafer surface treatments. The Chinese company is seeking compensation of 99.99 million yuan, approximately $13.94 million.
The dispute arose after Applied Materials filed a patent application in China, which lists two former employees of Mattson Technology—an entity acquired by Beijing E-Town in 2016—as co-authors. Beijing E-Town claims these employees were bound by confidentiality agreements and that the patent incorporates technology developed jointly, violating Chinese laws on fair competition and industrial secrets protection.
This legal battle is a continuation of earlier disputes: in 2022, Applied Materials sued Mattson for allegedly hiring employees with the intent to acquire trade secrets, which Mattson responded to with a countersuit in 2023.
Beijing E-Town asserts that it possesses advanced technology in high-concentration plasma generation, stability, and uniformity, essential for processes such as dry etching, resist removal, and surface treatment—core to modern chip manufacturing. Besides financial compensation, the company seeks a court order to prohibit the dissemination and commercialization of products based on these technical secrets, recognition of its ownership rights over the challenged patents, and the destruction of infringing materials.
This lawsuit is significant because it underscores the increasing efforts of Chinese firms to defend their technological assets amid broader efforts toward technological self-sufficiency. In a wider geopolitical context marked by trade tensions between the U.S. and China, the case has the potential to impact bilateral industrial relations and regulations. It may also influence the global semiconductor industry, given Applied Materials’ status as one of the largest suppliers of semiconductor fabrication equipment worldwide. The case may establish a legal precedent, reflecting China’s movement toward stricter legislation to protect its intellectual property.
The relevant court has accepted the lawsuit, though no hearing date has been scheduled yet. Applied Materials has not issued any public statement regarding the case.
Frequently Asked Questions (FAQ)
What technology is in dispute?
It involves methods of high-concentration plasma generation and wafer surface treatment used in chip manufacturing equipment.What is Mattson’s connection to the case?
Mattson Technology was acquired by Beijing E-Town in 2016. Two former employees of Mattson, who later joined Applied Materials, are involved because the patent under dispute includes technology originating from that unit.What is Beijing E-Town demanding?
They seek compensation of 99.99 million yuan (around $13.9 million), cessation of the technology’s use, legal recognition of their intellectual property rights, and destruction of infringing materials.Why is this litigation significant globally?
It reflects China’s increased efforts to protect technological assets, adds pressure to trade tensions with the U.S., and impacts the global semiconductor industry.