TSMC files lawsuit against ex-executive over trade secret leaks

Taiwan Semiconductor Manufacturing Co. (TSMC) has filed a lawsuit against its former senior vice president Wei-Jen Lo in Taiwan’s Intellectual Property and Commercial Court.

TSMC alleges that Lo, who recently joined Intel, may use or disclose its trade secrets and confidential information, referencing his employment contract, non-compete agreement, and the Trade Secrets Act.

Lo joined Intel in October after a 21-year career at TSMC, where he contributed to mass production of advanced chips.

Taiwan’s economy ministry said it respects TSMC’s legal action and will monitor the case for potential impacts on the industry and possible violations of the National Security Act.

Authorities are also investigating after local media reported Lo may have taken TSMC technology data to Intel.

Before TSMC, Lo worked at Intel for 18 years in technology development and factory management roles.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Preliminary injunction standards are stringent in Taiwan trade secret cases, making this lawsuit’s immediate impact uncertain

The Intellectual Property and Commercial Court uses a four-part test for preliminary injunctions (a temporary order that keeps the status quo before trial) 1. Judges vet requests closely because products can be pulled or market access can shrink 2.
First-instance judgment (the first trial-level ruling) in civil trade secret suits often takes 8 months to 1.5 years 3, so any near-term limits on Lo’s role at Intel stay unclear until the court decides.
Taiwan’s Trade Secrets Act punishes theft or misuse of confidential business information with up to five years in prison or ten years for foreign use 1. Limits on a senior executive’s role hinge on TSMC proving specific secrets were taken with an imminent misappropriation risk 4.

Semiconductor firms expanding US fabs should implement compliance controls before hiring from competitors

More than $500 billion has gone into US fabrication since 2020, with four fab (chip plant) projects slated to break ground by late 2025 5.
A shortfall of more than one million skilled workers by 2030 will push moves by leaders with fab management experience across companies, which will fuel trade secret fights 5.
Companies adding capacity should roll out insider risk controls (policies and monitoring that prevent employee misuse or exfiltration of sensitive data), document classification, and compliant onboarding before hiring from rivals 3 4. Courts can order evidence preservation or document production 3.