[News] Ex-TSMC SVP Wei-Jen Lo Moves to Intel: Sub-2nm Data Leak Concerns and TSMC Strategy in Focus

Fresh off a 2nm data leak involving its engineers in August, TSMC is now facing an even bigger headache: rumors that former Senior VP Wei-Jen Lo—who reportedly joined Intel recently after retiring in July—had subordinates brief him and photocopy sensitive sub-2nm process materials before he left the company. The situation has sparked a flurry of conflicting accounts, with developments and disputes continuing to unfold.

Scope of Materials Taken

As first reported by Liberty Times, Lo allegedly used his senior VP authority to have subordinates brief him and copy sensitive TSMC materials on 2nm, A16, A14, and other next-gen processes. However, the Economic Daily News, citing sources, suggests that he left with more than 20 boxes of handwritten documents compiled by his staff.

Interestingly, the Economic Daily News notes that Lo was passionate about technology but never relied on a laptop in meetings, adding that when suppliers briefed him, he handwrote everything. Valuing his notes highly, his staff reportedly packed over 20 boxes of notebooks and papers when he left. Thus, the report suggests that there’s a possibility that the documents Lo carried were likely his personal notes rather than company secrets.

Commercial Times also suggests that the likelihood of Lo physically taking photocopied confidential documents is low, noting that TSMC uses specialized metallic watermarking on sensitive materials, making any leaked content traceable.

For now, TSMC is reportedly investigating the case, while Taiwan’s High Prosecutors Office, Intellectual Property Branch, has opened a case to determine whether he violated the National Security Act or the Trade Secrets Act, according to the Economic Daily News. However, media reports also indicate that because Lo is a U.S. citizen, whether the National Security Act even applies to his case will require further legal clarification.

Non-Compete in Question — Was TSMC Informed?

As reported by Liberty Times, Lo’s new role as Intel VP of R&D puts him in charge of advanced node development from R&D to pre-production—a key function for boosting yields just as Intel races to stabilize 18A production. This has raised growing concerns over whether TSMC was aware of the situation and whether any non-compete agreements may have been breached.

Sources cited by the Economic Daily News note that TSMC’s Proprietary Information Protection (PIP) system is extremely strict—particularly after a past incident involving stolen 2nm data. Given Lo’s role overseeing TSMC’s most advanced nodes, legal experts argue it is implausible that TSMC’s legal team would let him leave for Intel without a non-compete or any binding restrictions, the report adds.

On the other hand, Commercial Times reports that late last month, supply-chain sources indicated that Lo already has an active Intel email account—something TSMC’s top management is also said to be aware of.

Thus, the Economic Daily News suggests that Lo’s move to Intel might have been quietly approved by TSMC’s top management—a possible explanation for why the company has neither filed complaints nor publicly addressed reports that he took large volumes of handwritten technical notes.

Lo Case: TSMC’s Test of Wisdom

Lo, once a key figure in TSMC’s leadership and the architect of the “Night Hawk Project” that powered the company through its 10nm transition, recalls memories of Meng-Song Liang, a rising TSMC R&D star who went on to join Samsung and later SMIC in the 2010s.

As noted by Liberty Times, Liang entered TSMC in 1992 and quickly proved himself a powerhouse in R&D, eventually rising to senior director of R&D. But in 2009 he reportedly left the company on a sour note. After a semester teaching at National Tsing Hua University, he moved to Sungkyunkwan University in Korea. When his non-compete with TSMC expired in February 2011, he collected his vesting shares and, by July, joined Samsung as VP of R&D and CTO for its foundry business, the report explains.

Notably, Liberty Times reports that TSMC accused Liang of leaking trade secrets after helping Samsung jump to 14nm and win Apple processor orders. The legal battle lasted nearly four years, ending with Taiwan’s Supreme Court ruling in TSMC’s favor—barring Liang from working at Samsung until December 31, 2015, and forbidding him from sharing TSMC trade secrets or R&D staff names, the report adds.

However, the report highlights that Liang’s trajectory—from Samsung to China’s SMIC—differs sharply from the situation surrounding Lo and U.S.-based Intel. If the allegations against Lo are substantiated, handling the case will be a major test of TSMC’s strategic judgment, as per Liberty Times.

Read more

• [News] Former TSMC SVP Wei-Jen Lo Said to Have Joined Intel, Allegedly Bringing Sub-2nm Process Files
• [News] Intel Reportedly Eyes Retired TSMC Veteran Wei-Jen Lo, Advanced Node Pioneer, to Lead R&D

(Photo credit: TSMC)