TSMC Takes Legal Action Against Former Executive For Allegedly Sharing AI Chip Tech With Intel: Report

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According to a Bloomberg report, TSMC lodged a complaint on November 25 in Taiwan’s Intellectual Property and Commercial Court, accusing its ex–senior vice president of violating a non-compete agreement.

  • The lawsuit alleges that Lo Wen-jen probably used or disclosed TSMC’s most sensitive technological data after joining Intel.
  • Wen-jen has worked in the mass production of advanced chips, including the company’s leading AI accelerators.
  • Taiwan manufactures the majority of the world’s semiconductors, accounting for more than 60%.

Taiwan Semiconductor Manufacturing Co. (TSMC) has reportedly taken legal action against one of its former top engineers, claiming he may have shared its proprietary information with its longtime rival, Intel Corp. (INTC).

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According to a Bloomberg report, the company filed a complaint on November 25 in Taiwan’s Intellectual Property and Commercial Court, accusing its former senior vice president of violating a non-compete agreement. 

Lawsuit Filed Over Trade Secrets

The lawsuit alleges that Lo Wen-jen probably used or disclosed TSMC’s most sensitive technological data after joining Intel. The company also said Lo failed to reveal in his exit interview that he planned to move to Intel, instead telling TSMC’s legal team he intended to work in academia. 

He had served at TSMC for over two decades, contributing heavily to the mass production of advanced chips, including the company’s leading AI accelerators, according to the report.

Taiwan Semiconductor’s stock inched 0.7% lower in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘high’ message volume levels. 

TSM’s Sentiment Meter and Message Volume as of 06:00 a.m. ET on Nov. 25, 2025 | Source: Stocktwits

Strategic Stakes

TSMC’s manufacturing methods and internal research are considered strategic assets. As global demand for cutting-edge semiconductors, including chips for artificial intelligence, remains intense, the company cannot risk leaks to rivals.

According to the Asia Pacific Foundation for Canada’s report, Taiwan manufactures the majority of the world’s semiconductors, accounting for more than 60%, and it is responsible for over 90% of the highest-end chips used globally. Most of these chips are produced by TSMC. 

TSM stock has gained over 44% in 2025 and over 53% in the last 12 months. 

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