TSMC files lawsuit against former executive on security concerns

2330.TW +2.91% INTC +3.74%

By Ben Blanchard and Wen-Yee Lee

TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co (TSM) said on Tuesday it ​had filed a lawsuit in Taiwan's Intellectual Property and ‌Commercial Court against its former Senior Vice President Wei-Jen Lo, who recently ‌joined Intel.

In an emailed statement, TSMC said the lawsuit is based on the terms of the employment contract between TSMC and Lo, the non-compete agreement signed by Lo, and regulations such ⁠as the Trade Secrets ‌Act.

"There is a high probability that Lo uses, leaks, discloses or transfers TSMC's trade ‍secrets and confidential information to Intel, thus making legal actions necessary," TSMC said.

Intel and Lo did not immediately ​respond to requests for comment.

Lo, who helped drive TSMC'‌s mass production of cutting edge 5-nanometre, 3-nm and 2-nm chips, joined Intel in October after retiring from TSMC following a 21-year-long career there. A source familiar with the matter said he reports directly to Intel CEO Lip-⁠Bu Tan.

Last week, Taiwan's ​economy minister said authorities were investigating Lo ​after local media reported that he may have taken TSMC's advanced technology data to his new employer.

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Before joining ‍TSMC in 2004,⁠ Lo worked at Intel for 18 years. He served as a director of technology development and was a factory ⁠manager, running Intel’s development facility in Santa Clara, California.

(Reporting ‌by Ben Blanchard and Wen-Yee Lee; Editing ‌by Jan Harvey, Kirsten Donovan)