[News] TSMC Sues Ex-SVP Lo Over Undisclosed Intel Move: Non-Compete, Trade Secrets, and What’s Next

After nearly a month of rumors that former TSMC senior vice president Wei-Jen Lo had jumped to Intel—and may have taken sub-2nm process documents with him—the foundry giant finally broke its silence last night. According to the Economic Daily News, TSMC confirmed that on November 25 it filed a lawsuit with the Intellectual Property and Commercial Court, accusing Lo—who recently joined Intel as Executive Vice President—of violating a non-compete agreement and misappropriating trade secrets by failing to disclose his move to the company.

Notably, the case comes on the heels of a separate 2nm information leak involving a former engineer and current TSMC staff. This article examines the facts of Lo’s case, Intel’s potential move, and the lessons the company may draw from the latest incident.

How the Lo Controversy Unfolded

According to the Economic Daily News and Liberty Times, a central issue is Lo’s failure to disclose his post-retirement plans, which TSMC says violates his non-compete agreement. TSMC noted that during his exit interview, Senior Vice President, Legal and General Counsel / Corporate Governance Officer Sylvia Fang reminded him of his obligations, yet Lo claimed he planned to enter academia and did not reveal any intention to join Intel.

TSMC, in the company statement, argues that Lo’s move raises serious risks of trade-secret leakage, making legal action necessary. The company also outlined his roles: joining in 2004, rising to senior vice president in 2014, and retiring on July 27, 2025. Although reassigned to Corporate Strategy Development in March 2024—a unit without R&D authority—Lo continued directing R&D teams outside his chain of command, the company says.

Industry sources told Liberty Times that in the two to three months before retiring, Lo summoned managers from R&D, production, finance, and other departments to brief him and provide sensitive data, including 2nm, A16, and A14 technologies. Some staff questioned why a soon-to-retire executive needed such reports, while others complied. After learning he may have taken confidential materials to Intel, employees felt deceived and are urging the company to take firm action, the report notes.

Intel’s Next Move

It is worth noting that a couple of days ago, Intel CEO Lip-Bu Tan has spoken out in response while attending the Semiconductor Industry Association Awards in San Jose last Thursday. According to Bloomberg, Tan describes the claims as rumor and speculation, stressing that the company respects intellectual property.

TechNews reports that Intel headquarters is aware of TSMC’s legal action against Lo. Given the case’s complexity, a final response may take time, the report suggests. For now, industry rumors suggest Intel could distance itself from Lo, as Tan has pledged not to infringe on TSMC’s intellectual property—making it likely that Lo could be sidelined and blocked from joining the company.

Lesson Learned

Notably, as reported by the Economic Daily News, TSMC filed the lawsuit with the Intellectual Property and Commercial Court for misappropriation of secrets—not under the National Security Act for stealing sub-2nm technology. Unlike the previous 2nm leak involving engineers, this move underscores TSMC’s lack of evidence tying Lo to its most advanced process secrets, the report adds.

Additionally, the report also brings up concerns that given Lo’s U.S. citizenship, if he outright denies taking TSMC’s critical advanced process data to Intel, pursuing legal action to reclaim the company’s reputation could prove extremely challenging.

Liberty Times also notes that the fact that current employees briefed Lo and provided materials could make it harder to prove he misappropriated confidential information. The report suggests that if Lo now denies taking any secrets or claims to have destroyed the materials, TSMC could face significant challenges in pursuing legal action.

Thus, the reports suggest that TSMC needs stronger internal controls for senior executives. The Economic Daily News notes that the recent cases reveal gaps in the company’s Proprietary Information Protection (PIP), especially in overseeing high-level decision-makers.

Read more

• [News] Intel CEO Lip-Bu Tan Denies Allegations That Former TSMC Exec Brought Trade Secrets In
• [News] Former TSMC SVP Wei-Jen Lo Said to Have Joined Intel, Allegedly Bringing Sub-2nm Process Files
• [News] Ex-TSMC SVP Wei-Jen Lo Moves to Intel: Sub-2nm Data Leak Concerns and TSMC Strategy in Focus

(Photo credit: TSMC)