TSMC Sues Former Executive Over Alleged Trade-Secret Breach and Intel Move

Taiwan Semiconductor Manufacturing Company (TSMC) has filed a civil lawsuit against Lo Wei-jen, its former senior vice president, accusing him of violating non-compete agreements and attempting to obtain sensitive research information after transitioning to a non-technical role. The case, lodged in Taiwan’s Intellectual Property and Commercial Court, comes amid a parallel criminal investigation by local prosecutors into possible trade-secret theft.

Details of the Allegations

Lo, who rejoined TSMC in 2004 after 18 years at Intel, played a key role in developing advanced nodes including 5 nm and 3 nm processes. In early 2025, he was moved from R&D to a strategic planning position. TSMC claims that even after the transfer, Lo continued contacting R&D personnel outside his reporting line to request updates on cutting-edge technologies — actions the company says breached his employment contract.

Lo retired from TSMC in late July 2025 and accepted an executive position at Intel in October 2025, prompting the lawsuit. TSMC alleges the sequence of events violated non-compete clauses and raised serious concerns about potential transfer of proprietary information.

Market and Industry Reaction

Following news of the lawsuit on November 26, 2025, TSMC shares fell more than 4% in Taipei trading, reflecting investor worries about talent retention and intellectual property risks in the intensifying global semiconductor competition.

Intel has not commented publicly on the case or Lo’s specific responsibilities at the company.

Broader Context

The lawsuit highlights growing tensions in the semiconductor sector as the U.S., Taiwan, and other regions vie for technological leadership in sub-3 nm manufacturing. Employee mobility between major foundries and integrated device manufacturers has become a flashpoint, with companies increasingly turning to legal action to protect trade secrets.

Taiwanese authorities are conducting a separate criminal probe, which could lead to additional charges if evidence of misappropriation is found.

In summary, TSMC’s lawsuit against former executive Lo Wei-jen over alleged contract breaches and his subsequent move to Intel has heightened concerns about trade-secret protection in the chip industry, contributing to a 4% drop in the company’s shares as the case unfolds.