Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) announced on Tuesday that it has initiated legal action against former executive Lo Wei-jen, accusing him of breaching employment terms by allegedly misappropriating trade secrets and sharing them with Intel Corp, a key competitor in the U.S.

According to Focus Taiwan, TSMC has filed a lawsuit at the Intellectual Property and Commercial Court, citing violations of the Trade Secrets Act, alongside breaches of employment, confidentiality, and noncompete agreements signed by Lo. The company revealed that Lo, who began his career with TSMC as a vice president in 2004 and rose to senior vice president by 2014, retired from the company on July 27 this year.

Despite his retirement, Lo took on a senior vice president role in corporate strategy and development in March 2024, a department that provides strategic advice to TSMC’s chairman and CEO but does not oversee research and development. TSMC alleges that Lo continued to hold meetings and requested reports from the R and D department to gain insights into ongoing technological developments.

Lo had signed confidentiality and noncompete agreements during his tenure and was briefed by TSMC’s chief legal officer on post-retirement legal obligations. Initially, Lo indicated plans to pursue a career in academia, without disclosing any intentions to join Intel.

By assuming the position of executive vice president at Intel, TSMC suspects that Lo likely utilized, disclosed, or transferred TSMC’s trade secrets to the competitor. TSMC stated that these actions necessitated legal measures, including seeking compensation for contract violations.

The lawsuit follows the announcement by the Taiwan High Prosecutors Office last week about an investigation into Lo’s alleged misappropriation of sensitive information related to TSMC’s 2 nanometer, A16, and A14 processes. However, prosecutors have not yet filed criminal charges against Lo.