TSMC Sues Former Senior VP Over Alleged Trade Secret Risk and Swift Move to Intel

Lawsuit Alleges Former Executive Violated Non-Compete Pacts and Sought Advanced Process Data Before Immediate Move to Intel

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Taiwan Semiconductor Manufacturing Co. (TSMC) announced today that it has formally filed a lawsuit with the Intellectual Property and Commercial Court (in Taiwan) against its former Senior Vice President, Dr. Lo Wei-Jen. The action centers on allegations that Lo violated his employment agreement, a signed non-competition commitment, and the Trade Secrets Act following his recent retirement and immediate subsequent appointment as an Executive Vice President (EVP) at competing firm Intel Corporation.

TSMC’s claim asserts that Lo’s direct transition to a high-ranking role at Intel poses a significant risk for the disclosure, transfer, or misuse of the company’s confidential information and trade secrets, particularly concerning advanced process technologies.

Tenure and Strategic Reassignment

Lo Wei-Jen had a long and distinguished career at TSMC, having joined the company as a Vice President in July 2004 and being promoted to Senior Vice President in February 2014. He formally retired on July 27, 2025.

However, the legal filing highlights a crucial period leading up to his departure. In March 2024, Lo was reassigned to the Corporate Strategy Development Office—a staff unit designed to advise the Chairman and CEO, which specifically removed him from the direct supervision or management of R&D affairs.

Despite this change in responsibility, TSMC alleges that Lo continued to request meetings and data from R&D department colleagues (who were not his subordinates) to gain knowledge of advanced and future-planned process technologies currently under development.

Non-Compete and Exit Interview Allegations

The core of TSMC’s contractual claim rests on the fact that Dr. Lo had signed both confidentiality and post-employment non-competition agreements during his tenure.

The company details a specific incident during the final exit interview on July 22, 2025, where Chief Legal Officer Sylvia Fang personally provided a reminder of his non-competition obligations and inquired about his post-retirement plans. According to TSMC, Lo responded that he intended to take a position at an academic institution, making no mention of his plan to join Intel.

“Immediately after his departure, Lo Wei-Jen quickly joined Intel Corporation as an Executive Vice President (EVP),” the statement reads. TSMC believes that, given Lo’s intimate knowledge of the company’s strategies and technological development, there is a “high probability” that he could utilize or transfer TSMC’s critical business secrets to Intel.

TSMC is seeking legal remedies, including compensation for breach of contract, to protect its technological assets against the alleged violation of his non-compete obligations and the Trade Secrets Act. The court is expected to review the evidence related to the employment contract, the signed non-competition clause, and the circumstances surrounding Lo’s departure and immediate employment with a key competitor.

According to Bloomberg, Intel Corp CEO Lip-Bu Tan dismissed reports about a new hire taking trade secrets from Taiwan Semiconductor Manufacturing Co to his company, saying that Intel respects other firms’ intellectual property (IP).

According to Taiwan’s Trade Secrets Act, the maximum criminal penalty for infringement of trade secrets is up to five years of imprisonment or detention, and a fine ranging from NT$1 million to NT$10 million may also be imposed. This legal provision applies to intentional acts of trade secret infringement, including the theft, embezzlement, use, or disclosure of trade secrets.