TSMC, the world’s largest contract chip manufacturer, has opened an unprecedented legal front against one of its former star executives. The Taiwanese company confirmed on November 25th that it has filed a lawsuit with the Taiwan Intellectual Property and Commercial Court against former Senior Vice President Wei-Jen Lo, accusing him of breaching his employment contract, a non-compete agreement, and trade secrets legislation.
The complaint comes after weeks of speculation on the island regarding Lo’s move to Intel and a possible transfer of sensitive information related to TSMC’s most advanced manufacturing processes.
From Internal Strategist to Intel Hire
Wei-Jen Lo joined TSMC in 2004 as vice president and was promoted to senior vice president in 2014. After more than two decades at the company, he officially retired on July 27, 2025.
Soon after, it was reported that Lo joined Intel as an executive vice president, a move that raised alarms within the Taiwanese firm, which views the U.S. semiconductor giant as its main competitor in the race for the most advanced process nodes.
In a statement, TSMC states that Lo’s departure and his near-immediate hiring by Intel have generated “reasonable concerns” about the possible use, disclosure, or transfer of trade secrets and confidential information to a direct rival. The company claims it had no choice but to seek damages and “exercise all available legal remedies.”
A Farewell Shrouded in Doubt
TSMC details that on July 22, 2025—just five days before Lo’s retirement—its legal head, Sylvia Fang, held his regular exit interview. During that meeting, the company states, he was explicitly reminded that he remained subject to non-compete obligations, and a reminder document was provided.
In this context, Lo reportedly informed them of his plans to enter academia, without mentioning any offer from Intel. The executive had previously signed confidentiality and non-compete agreements, common for senior roles in the semiconductor industry.
The company also asserts that even before his departure, Lo’s behavior raised suspicions. After being reassigned in March 2024 to the Corporate Strategy Development department—an advisory unit that assists the president and CEO but does not directly oversee R&D—the executive was allegedly still seeking access to information on advanced technologies.
According to TSMC, Lo held meetings with lower-ranking R&D staff below senior vice president level and outside of his reporting lines, asking for details about ongoing technologies and future nodes. The company considers this conduct, coupled with his later recruitment by Intel, a “serious breach” of his contractual and legal obligations and “a significant risk” to its intellectual property.
Investigation Over Potential National Security Risk
The case has transcended the corporate realm and has become a matter of national interest in Taiwan. Recent reports suggest that Lo may have copied data related to advanced processes before leaving the company and moving to Intel, prompting Taiwanese authorities to open a formal investigation.
The Prosecutor’s Office and the Ministry of Economic Affairs are examining whether the alleged leak could violate national security laws, given TSMC’s strategic role in Taiwan’s economy and the global chip supply chain. Reports indicate that the data under scrutiny relates to the A16 and A14 nodes, the company’s upcoming generation of process technology.
Economics Minister Ming-Hsin Kung confirmed that prosecutors are gathering preliminary information, but no formal charges against Lo have been made public at this time. The former executive, considered a key figure in developing TSMC’s high-performance 2-nanometer technologies, remains silent and has not made public statements.
Intel Denies Receiving Trade Secrets
The other major indirect player in the case is Intel. Asked about the matter during the Semiconductor Industry Association awards ceremony, Intel CEO Lip-Bu Tan attempted to downplay the tension. He told Bloomberg that the reports are “rumors and speculation” and emphasized that Intel “respects intellectual property rights.”
Tan refrained from providing details about internal hiring processes or an internal investigation related to Lo but rejected the idea that the executive has shared confidential information from TSMC in his new role.
Meanwhile, TSMC continues its internal investigation, and the civil lawsuit filed in a specialized court aims to establish grounds for potential financial claims and injunctive measures.
A Battle Reflecting Pressure in the Race for Advanced Nodes
The clash between TSMC and one of its veteran executives occurs at a particularly delicate moment for the industry. The competition to lead in 2nm and beyond process nodes is fierce, with direct implications for giants like Apple, Nvidia, AMD, and Qualcomm, which rely on cutting-edge processes for their future chips.
TSMC has been the benchmark for cutting-edge manufacturing, but Intel is seeking to regain ground with its own roadmap of advanced processes and a strong focus on third-party manufacturing. In this context, the knowledge accumulated by profiles like Lo on how to scale 2nm production with high yields is extremely valuable.
Non-compete clauses and confidentiality agreements have become key tools to protect this advantage. However, their practical application often raises legal and ethical debates: to what extent can a engineer’s or executive’s career be restricted, and how to distinguish between personal experience and the illegitimate transfer of trade secrets.
Lo’s case highlights this delicate balance. If courts determine that there was copying or disclosure of specific technical information—such as process data, manufacturing recipes, or performance parameters—the consequences could be severe in civil and potentially criminal realms. Conversely, if only general experience is deemed involved, legal options may be much more limited.
Implications for the Semiconductor Ecosystem
Beyond individual responsibilities, the litigation could have broader effects. Stricter controls over key personnel and non-compete clauses might hinder talent mobility between companies and countries, which is already a concern in a sector with a scarcity of highly qualified profiles.
At the same time, governments are increasingly watching these disputes, perceiving them as potential risks to their own economic and technological security. In Taiwan, any threat to TSMC’s intellectual property is seen almost as a matter of state, given the company’s importance to the island’s GDP and its geopolitical influence.
For now, everything indicates a lengthy process involving civil lawsuits, administrative investigations, and possibly criminal proceedings. TSMC has made clear it is committed to pursuing the case to the end; meanwhile, Intel seeks to distance itself from the scandal and defend its adherence to rules and standards of conduct.
What’s at stake is not just the reputation of a veteran executive but the protection of some of the planet’s most valuable industrial secrets at a time when the race for semiconductor leadership is as strategic as foreign policy itself.
Frequently Asked Questions about the TSMC–Wei-Jen Lo–Intel Case
Who is Wei-Jen Lo, and why is he relevant in the chip industry?
Wei-Jen Lo is a former senior vice president of TSMC. He joined the company in 2004 and held top positions, contributing to the development of advanced process technologies, including 2nm. His expertise in cutting-edge manufacturing makes him a highly valuable profile for any competitor.
What exactly does TSMC accuse their former executive of?
The company alleges that Lo violated his employment contract, a non-compete agreement, and Taiwanese trade secrets laws. It claims he joined Intel almost immediately after retiring and, prior to that, continued seeking information about advanced technologies outside his scope of responsibility—posing a risk to TSMC’s intellectual property.
Are there any proof that Intel received confidential information from TSMC?
So far, no conclusive evidence has been made public showing that Intel has used TSMC’s trade secrets. Intel’s CEO has dismissed the reports as “rumors and speculation” and affirmed that the company respects intellectual property rights. Internal investigations and Taiwanese prosecutors’ inquiries are still in preliminary stages.
What could be the industry impact of this case?
If courts find that trade secrets were stolen or transferred, the case could lead to hefty damages, restrictions for the executive, and even criminal penalties. Beyond this specific case, it could lead companies to tighten non-compete clauses and internal controls, while governments might increase oversight of talent movement in this strategic sector.
via: digitimes