TAIPEI, Taiwan – Taiwanese prosecutors conducted raids on the homes of a former senior executive of Taiwan Semiconductor Manufacturing Company (TSMC) after allegations surfaced that he leaked trade secrets to his new employer, Intel Corporation (INTC.O). The move comes amid rising concerns over intellectual property security in the global semiconductor industry.

TSMC, the world’s largest contract chipmaker and a major supplier to companies including Nvidia (NVDA.O), filed a lawsuit in Taiwan’s Intellectual Property and Commercial Court against Wei-Jen Lo, its former senior vice president, accusing him of disclosing proprietary information critical to TSMC’s semiconductor operations. Intel has denied any wrongdoing on Lo’s part.

Details of the Investigation

Taiwan’s prosecutors, through their Intellectual Property Branch, said Lo is suspected of violating the National Security Act. Investigators executed a search warrant on Wednesday afternoon, seizing computers, USB drives, and other evidence from two of Lo’s residences.

Additionally, a court approved the seizure of Lo’s shares and real estate, reflecting the seriousness of the legal actions. Neither Lo nor Intel immediately responded to Reuters’ requests for comment following the raids.

Intel’s Response

Intel has categorically denied TSMC’s allegations. A spokesperson stated:

“Based on everything we know, we have no reason to believe there is any merit to the allegations involving Mr Lo. We maintain rigorous policies and controls that strictly prohibit the use or transfer of any third-party confidential information or intellectual property.”

The company added that Lo, who rejoined Intel in October, is highly respected in the semiconductor industry for his integrity, leadership, and technical expertise. Intel emphasized that the movement of talent across companies is normal and healthy within the sector.

Background on Wei-Jen Lo

Lo spent 21 years at TSMC, playing a pivotal role in the mass production of cutting-edge 5-nanometer, 3-nanometer, and 2-nanometer chips. Before joining TSMC in 2004, he worked for Intel for 18 years, contributing to the company’s semiconductor expertise.

TSMC maintains that there is a high probability that Lo used, disclosed, or transferred trade secrets to Intel, necessitating legal action to protect its proprietary technology. The case highlights ongoing concerns about IP protection, talent mobility, and trade secrecy in the fast-evolving semiconductor sector.

Implications for the Semiconductor Industry

The TSMC-Intel trade secrets dispute underscores the intense competition in advanced chip manufacturing. As semiconductor companies race to develop smaller and more efficient chips, the protection of intellectual property has become critical for maintaining technological leadership and national security.

Experts note that cases like these could influence hiring policies, contractual agreements, and cross-border tech collaborations, particularly in regions where semiconductor innovation is vital to economic and strategic interests.