Intel has defended itself against accusations that its latest executive hire stole trade secrets, as TSMC sues the engineer and Taiwanese prosecutors say they have launched an investigation into the incident.
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Wei -Jen Lo, a Taiwanese engineer, joined Intel this fall, hired to help the company improve its mass production processes. He had previously worked at the American company in the 1980s, during its heyday, before joining TSMC in 2004, helping to oversee that company's most successful period as well.
This week, TSMC announced it was suing Lo, alleging that he violated his employment contract and non-compete agreement, along with Taiwan’s Trade Secrets Act. “There is a high probability that Lo will use, leak, disclose or transfer TSMC’s trade secrets and confidential information to Intel, making legal action necessary,” TSMC said. Taiwanese authorities are now also getting involved.
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Reuters reports that prosecutors have opened an investigation into Lo and that investigators have raided two of his homes, seizing computers, USB drives and other evidence. Lo’s real estate and stocks could also be seized. “Based on everything we know, we have no reason to believe there are any valid charges against Mr. Lo,” an Intel spokesperson told Reuters, defending its policies against transferring confidential information from third parties. “We take these commitments seriously,” Intel said.
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But Taiwan also takes its trade secrets seriously and has already indicted three other people this year in a separate case involving the alleged theft of TSMC's chip-making technology to help a Japanese competitor. Intel's involvement complicates the situation now that the US government has a 10 percent stake in the company and hopes to revive its fortunes as a semiconductor giant and take advantage of the artificial intelligence boom that TSMC is currently enjoying.
