Intel CEO denies ex-TSMC exec brings trade secrets

Intel CEO Lip-Bu Tan has denied reports that a recent hire brought trade secrets from Taiwan Semiconductor Manufacturing Co. (TSMC) to the US chipmaker.

Taiwanese media reported this week on the move of Lo Wen-jen, a former TSMC executive, to Intel, alleging he took proprietary information with him.

Tan called the allegations “rumor and speculation,” and said Intel respects intellectual property.

TSMC is conducting an internal investigation, but it is unclear if any trade secrets were taken, or if there was any impact on the company, according to a person familiar with the matter.

Taiwanese prosecutors have started reviewing the reports to determine if any laws were broken.

Lo retired from TSMC in July after overseeing corporate strategy and research, and previously worked at Intel in technology development.

Taiwan’s government has expressed concern about the potential national security implications of the move.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Taiwan steps up trade secret enforcement, outcomes for executive moves still unclear

Taiwan toughened its national security law in 2022 to guard strategic technologies. Officials called a recent TSMC-linked detention the first under the updated rules 1.
Three current or former workers tied to TSMC were held over suspected trade secret theft 1.
The Lo Wen-jen matter differs. He retired in July and reportedly rejoined Intel in late October. Local media said he took more than 80 boxes of materials. Prosecutors opened a probe to determine if any wrongdoing occurred 2.
Investigators have not confirmed any trade secrets or legal violations. The result is still open 2.

Chip firms need ‘clean-room’ hiring for cross-border moves

Information firewalls in legal “clean-room” setups separate development teams and limit new hires’ roles. These controls help prove independent work and defend against trade secret claims 3.
For chip tool makers such as Tokyo Electron, whose Taiwan office was searched and which dismissed a staffer tied to the case, clear rules before hiring from rivals can prevent costly probes 1.
Tech employers bringing in semiconductor executives should use thorough onboarding with confidentiality agreements. Limit early project work and keep careful records of development steps 3.