Taipei: In a dispute that has sent tremors through the global semiconductor sector, Intel has firmly denied accusations from Taiwan Semiconductor Manufacturing Company (TSMC) that one of its newly hired executives leaked highly sensitive corporate information. The allegation, involving former TSMC senior vice-president Wei-Jen Lo, emerged after TSMC filed a lawsuit earlier this week claiming that confidential manufacturing data may have been transferred to Intel. The move triggered an immediate reaction from Taiwanese authorities, intensifying concerns over intellectual property security in an industry that underpins everything from smartphones to advanced military hardware.
TSMC’s legal action prompted prosecutors to conduct coordinated raids on two residences belonging to Lo, seizing computers, hard drives, USB devices, and other electronic items in hopes of uncovering evidence of data transfer. Authorities additionally sought a court order freezing Lo’s real-estate and stock assets, citing the seriousness of the allegations. Investigators have suggested that the case may fall under Taiwan’s National Security Act an unusually escalated classification that underscores the strategic weight of semiconductor technology and the national vulnerabilities associated with its potential misuse. The inquiry has also sparked debate within Taiwan over the broader implications for the mobility of high-level engineers between competing global chipmakers.
Intel issued a sharp and unambiguous rebuttal to the accusations, insisting that it has “no reason to believe” any breach of confidentiality occurred. The company emphasized that it maintains strict compliance mechanisms that prohibit the use or transfer of proprietary information belonging to other firms. Highlighting Lo’s reputation for professionalism and ethical conduct, Intel defended the hiring as part of normal talent movement within a competitive industry where experience in advanced fabrication nodes is invaluable. The company also warned against drawing premature conclusions from an investigation still in its early stages, stressing that talent mobility is essential for technological progress.
The stakes surrounding the case extend well beyond a corporate disagreement. As the world’s largest contract chipmaker, TSMC holds unmatched dominance in the manufacturing of leading-edge nodes such as 5-nanometre, 3-nm, and emerging 2-nm technologies areas where Lo had been deeply involved during his long tenure with the company. Any suspicion of leakage involving such cutting-edge processes carries profound implications not only for TSMC’s competitiveness but also for global supply chains that depend on its manufacturing leadership. With semiconductors now at the core of geopolitical tensions, especially involving Taiwan, even allegations of intellectual-property compromise are enough to trigger international scrutiny.
For Taiwan, the investigation is unfolding in a climate of heightened sensitivity. Semiconductor technology is widely viewed as the island’s “silicon shield,” crucial to its economic security and geopolitical standing. Officials have therefore approached the case with visible urgency, preparing for a lengthy legal battle that could set future standards for how trade-secret disputes are handled. Prosecutors have said they are assessing whether the allegations intersect with national-security concerns, indicating that the outcome could reshape how Taiwan regulates technology transfers and talent migration.
As the legal process advances, both companies are bracing for a drawn-out confrontation that may influence global semiconductor dynamics. For now, Intel maintains its stance that there is “no merit” to the claims, while TSMC continues to press forward with the investigation, insisting it is acting to protect proprietary knowledge vital to its future. With authorities seizing evidence and industry observers watching closely, the case is expected to develop into one of the most closely watched trade-secret disputes in the sector’s recent history.