TSMC Advanced-Node Materials Reportedly Found at Lo’s Residence Amid Controversial Intel Hire

[Fred Chen]

TSMC senior vice president Wei-Jen Lo has moved to Intel, drawing industry attention over potential risks to sensitive advanced-process expertise, and new details are now emerging. According to Liberty Times, industry sources say investigators searched Lo’ s residence in late November, seized multiple boxes of materials, and found a substantial amount of confidential information related to TSMC’s advanced process technologies that are under development. The report says the materials were taken without authorization from TSMC, and there may be evidence of a violation of the National Security Act.

As the report notes, Lo holds U.S. citizenship and has settled in the country. It adds that if authorities later summon him for testimony and he fails to appear in accordance with the law, he could face compulsory detention and be placed on a wanted list. Meanwhile, the court has approved the seizure of Lo’s shares and real-estate assets, which industry estimates value at more than NT$20 billion.

In addition, sources cited by Taiwan Television Enterprise say TSMC has notified relevant supply-chain partners not to provide any confidential information to Lo and has comprehensively changed the project code names for its advanced-process programs to prevent him from gaining further access to internal advanced-process secrets.

TSMC Lawsuit and Intel’s Response

Lo retired from TSMC in late July this year and took on a vice president role at rival Intel by late October. According to Economic Daily News, TSMC confirmed that it filed a lawsuit with the Intellectual Property and Commercial Court on November 25, accusing Lo of breaching a non-compete agreement and misappropriating trade secrets by failing to disclose his move to the company.

As Liberty Times notes, TSMC states that for more than a year before his retirement, Lo had been reassigned to the role of senior vice president in the Corporate Strategy Development Division, where his responsibilities no longer required oversight or management of R&D operations. However, Lo continued to request meetings with R&D teams and sought access to materials to gain insight into advanced process technologies under development.

Amid the controversy, Intel has voiced its support for Lo. OregonLive reports that in late November, CEO Lip-Bu Tan reassured employees that the company acted responsibly in hiring Lo, said he “continues to have our full support,” and dismissed the allegations as “lacking merit,” pushing back against the new lawsuit from the Taiwanese foundry giant.

[News] TSMC Advanced-Node Materials Reportedly Found at Lo’s Residence Amid Controversial Intel Hire

TSMC senior vice president Wei-Jen Lo has moved to Intel, drawing industry attention over potential risks to sensitive advanced-process expertise, and...

www.trendforce.com

 

[Xebec]

Is Taiwan an "innocent until proven guilty" kind of judicial system or is it more assuming of guilt, such as is the case in Japan?

 

[siliconbruh999]

so either Lo is both guilty and dumb and didn't take the notes with him or they are just calling the wrong thing the evidence.

 

[Fred Chen]

Is Taiwan an "innocent until proven guilty" kind of judicial system or is it more assuming of guilt, such as is the case in Japan?

so either Lo is both guilty and dumb and didn't take the notes with him or they are just calling the wrong thing the evidence.

It should be innocent until proven guilty, so they may have considered the materials in the boxes to be proof. Wei-Jen should have gotten a lawyer by now.

 

[lilo777]

There is no new information here. These are the same boxes with Wei-Jen notes that we knew he took with him. The fact the boxes are still in his home and not in Oregon may play in his favor

 

[Daniel Nenni]

There is no new information here. These are the same boxes with Wei-Jen notes that we knew he took with him. The fact the boxes are still in his home and not in Oregon may play in his favor

This was reported in the Liberty Times with nothing new to add:

羅唯仁遭檢調搜索 傳查獲台積電大批先進製程機密資料 - 自由財經

首次上稿 19:32更新時間 23:14 〔記者洪友芳／新竹報導〕半導體業近日傳出，檢調單位於11月底前往前台積電資深副總羅唯仁的住居所搜索，帶走多箱資料中，發現確有大批是台積電研發中的先進

ec.ltn.com.tw

TrendFork just tossed the salad a bit and added some dressing.

Complete waste of space.

 

[Fred Chen]

There is no new information here. These are the same boxes with Wei-Jen notes that we knew he took with him. The fact the boxes are still in his home and not in Oregon may play in his favor

This was reported in the Liberty Times with nothing new to add:

羅唯仁遭檢調搜索 傳查獲台積電大批先進製程機密資料 - 自由財經

首次上稿 19:32更新時間 23:14 〔記者洪友芳／新竹報導〕半導體業近日傳出，檢調單位於11月底前往前台積電資深副總羅唯仁的住居所搜索，帶走多箱資料中，發現確有大批是台積電研發中的先進

ec.ltn.com.tw

TrendFork just tossed the salad a bit and added some dressing.

Complete waste of space.

I think the key new development here is that they have confirmed that the boxes of confidential materials were taken; before it seemed to be hearsay. So this begs the question of how TSMC could have let him take them. Presumably, it was under the agreement that he would not be joining Intel or another competitor company.

They're also bringing up the possibilty of having him appear in court. Perhaps then we can get the full story.

Finally, TSMC is instructing (reminding?) third parties like suppliers not to give any confidential information, and has changed project codes as well.

 

[Xebec]

TrendFork just tossed the salad a bit and added some dressing.

Complete waste of space.

At least they've been upgraded from Farce to Fork!

 

[Barnsley]

I think the key new development here is that they have confirmed that the boxes of confidential materials were taken; before it seemed to be hearsay. So this begs the question of how TSMC could have let him take them. Presumably, it was under the agreement that he would not be joining Intel or another competitor company.

They're also bringing up the possibilty of having him appear in court. Perhaps then we can get the full story.

Finally, TSMC is instructing (reminding?) third parties like suppliers not to give any confidential information, and has changed project codes as well.

Was he going to use the notes to make firelighters?

If they are his property then whats the issue , if they are not then why does he have them?

 

[Daniel Nenni]

I think the key new development here is that they have confirmed that the boxes of confidential materials were taken; before it seemed to be hearsay. So this begs the question of how TSMC could have let him take them. Presumably, it was under the agreement that he would not be joining Intel or another competitor company.

They're also bringing up the possibilty of having him appear in court. Perhaps then we can get the full story.

Finally, TSMC is instructing (reminding?) third parties like suppliers not to give any confidential information, and has changed project codes as well.

According to sources........... Ah fork me. I read a story about a women who is suing a person who posted a Tik-Tok that resulted in death threats, her being cancelled, etc... even though she did nothing wrong. I hope she wins.

Same thing for Wei-Jen Lo. If there are no boxes with TSMC IP I hope he gets retribution from the media and their unnamed sources.

 

[essiah]

That scumbag is cooked ... maybe

 

[MKWVentures]

I am surprised all this happened but going forward:
Taiwan and TSMC want to punish him for being disloyal. Nothing to do with Intel
I am shocked Intel would hire him (other than as a consultant).... legal can refuse to hire someone or even fire someone for being a potential IP liability.

Next time: use the tried and true methods for hiring from a competitor (consultant, no public acknowledgement for 1 year, clear acknowledgement not to share IP).

Did they use a DPP or KMT special council to investigate files stored at his house (sorry, had to get that in)

 

[hist78]

I am surprised all this happened but going forward:
Taiwan and TSMC want to punish him for being disloyal. Nothing to do with Intel
I am shocked Intel would hire him (other than as a consultant).... legal can refuse to hire someone or even fire someone for being a potential IP liability.

Next time: use the tried and true methods for hiring from a competitor (consultant, no public acknowledgement for 1 year, clear acknowledgement not to share IP).

Did they use a DPP or KMT special council to investigate files stored at his house (sorry, had to get that in)

I’m puzzled that Intel didn’t settle this incident with TSMC quickly and instead let the case drag on. Perhaps Intel is a powerful but muddy pond. Any smart and capable people hired by Intel, from CEOs to engineers to security guards, will eventually become very different in their thinking and decision making.

 

[Daniel Nenni]

Im puzzled that Intel didn't settle this incident with TSMC quickly and let the case drags on.

I agree. This is a bad look for Lip-Bu. No way should he have engaged with Wei-Jen Lo. From what I have heard, from people who would know, Wei-Jen Lo had an axe to grind with CC Wei so this may have been premediated.

If I were Lip-Bu I would provide transparency and disengage with Wei-Jen Lo. Admit your mistakes. learn form it and move on. You cannot change the past, you can only change the future, absolutely.

 

[Xebec]

I agree. This is a bad look for Lip-Bu. No way should he have engaged with Wei-Jen Lo. From what I have heard, from people who would know, Wei-Jen Lo had an axe to grind with CC Wei so this may have been premediated.

If I were Lip-Bu I would provide transparency and disengage with Wei-Jen Lo. Admit your mistakes. learn form it and move on. You cannot change the past, you can only change the future, absolutely.

Is WJL definitely guilty of stealing trade secrets?

 

[hist78]

Is WJL definitely guilty of stealing trade secrets?

In the business world, or in this particular case, whether Mr. Wei-Jen Lo is guilty or not should not be the most important consideration for Intel. I believe that any unpleasant hiccups in the Intel–TSMC relationship could easily cost Intel several billion dollars in potential revenue and profit.
Intel may win a legal case, but that doesn’t mean it should damage its long-term relationship with TSMC at any cost.

 

[Daniel Nenni]

In the business world, or in this particular case, whether Mr. Wei-Jen Lo is guilty or not should not be the most important consideration for Intel. I believe that any unpleasant hiccups in the Intel–TSMC relationship could easily cost Intel several billion dollars in potential revenue and profit.
Intel may win a legal case, but that doesn’t mean it should damage its long-term relationship with TSMC at any cost.

Agree 100%. Mr. Wei-Jen Lo is innocent until proven guilty by a court of law not the media. On the other hand, Lip-Bu's responsibility is keeping Intel thriving and I see no upside to employing Wei-Jen Lo at this time.

If Wei-Jen Lo was not honest with Lip-Bu about his departure at TMSC Lip-Bu should show some transparency and disengage with Wei-Jen Lo.

 

[Daniel Nenni]

The case of the former TSMC manager underlines the risks and legal challenges involved in the transfer of high-ranking specialists within the semiconductor industry. Whether there has actually been a demonstrable breach of secrecy cannot be verified at present and depends on the further course of the investigation. Irrespective of this, the case shows the central importance of technology transfers, compliance structures and state protection of sensitive industrial sectors.

Reuters
Intel rejects allegations that a former TSMC executive leaked trade secrets, emphasizes internal IP compliance policies

Taiwan raids former TSMC exec's home in trade secrets probe

Taiwan prosecutors said on Thursday investigators had raided the homes of a former senior TSMC executive and seized computers after the company accused him of leaking trade secrets, something his current employer Intel has denied.

www.reuters.com

Tom’s Hardware
Report on searches of a former TSMC executive’s home following a lawsuit alleging theft of secrets related to his move to Intel

https://www.tomshardware.com/tech-industry/semiconductors/ex-tsmc-executives-home-raided-after-lawsuit-filings

n-tv.de
Description of TSMC’s lawsuit against a former manager for suspected betrayal of secrets to Intel and ongoing investigations in Taiwan

https://www.n-tv.de/wirtschaft/TSMC-verklagt-Ex-Manager-wegen-Geheimnisverrats-an-Intel-article30066807.html

ad-hoc-news.de
Summary of international reports on TSMC’s lawsuit and allegations of unlawful possession of sensitive manufacturing documents

TSMC Files Lawsuit Against Intel Over Alleged Trade Secret Theft by Former Executive

TSMC US8740391003

www.ad-hoc-news.de

 

[Xebec]

In the business world, or in this particular case, whether Mr. Wei-Jen Lo is guilty or not should not be the most important consideration for Intel. I believe that any unpleasant hiccups in the Intel–TSMC relationship could easily cost Intel several billion dollars in potential revenue and profit.
Intel may win a legal case, but that doesn’t mean it should damage its long-term relationship with TSMC at any cost.

Understand. I dislike the game of optics vs. reality, but sometimes it's the only choice.

LBT seems like a pretty wise man; he may know something we do not.