On Thursday, Taiwanese prosecutors searched the homes of a former man Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) vice president after the chipmaker accused him of passing on confidential information Intel Corp (NASDAQ:INTC).
Houses searched, devices seized in investigation of trade secrets
The intellectual property department of Taiwanese prosecutors raided two related homes Wei-Jen Loa former TSMC executive who joined Intel in October, Reuters reported.
Prosecutors said they also seized computers, USB drives and other storage devices as potential evidence.
According to authorities, Lo is suspected of violating Taiwan’s National Security Act, which protects strategically important technologies.
A court also approved a request to freeze his stock and real estate holdings as the investigation continues, the report said.
Related: Trump Pressures Taiwan to Train US Workers as TSMC Struggles in Arizona: Report
TSMC flags ‘high probability’ of leaked advanced chip technology
TSMC said earlier this week it had filed a lawsuit after determining there was a “high likelihood” that Lo used or disclosed its trade secrets, including sensitive details related to its 5-nanometer, 3-nm and 2-nm manufacturing processes.
The company said legal action was necessary due to the possible transfer of “confidential information” to Intel.
Lo spent 21 years at TSMC, where he played a key role in the mass production of the most advanced nodes. Before joining the company in 2004, he spent 18 years at Intel.
Intel strongly denies allegations, defends director
Intel rejected TSMC’s claims, saying it has “no reason to believe” the allegations are substantiated based on internal investigations.
The company also emphasized that switching employees between chip makers is a “common and healthy” practice in the industry.
Intel and TSMC did not immediately respond from Benzinga request for comment.
The investigation unfolds as CEO of Intel Lip Bu Tan is driving the company’s turnaround by sharpening its technical priorities, accelerating AI development and rebuilding its foundry operations to catch up with TSMC, which still leads advanced chip manufacturing for Nvidia Corp. (NASDAQ:NVDA) And Apple Inc. (NASDAQ:AAPL).
Benzinga’s Edge Stock Rankings show that although TSMC’s short-term trend has turned negative, the company continues to show strong price performance in the medium and long term. Click here to see how it compares to peers.
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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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