Taiwan Raids Former TSMC Executive’s Home in Trade Secrets Probe

In a significant escalation within Taiwan’s semiconductor industry, prosecutors recently raided the homes of a former executive from Taiwan Semiconductor Manufacturing Company (TSMC) amid an investigation into suspected trade‑secret leaks. The case underscores the high stakes in the global semiconductor race, where protecting intellectual property is closely tied to national security.

What Happened: The Raid and Seizure

On November 26, 2025, Taiwan’s High Prosecutors Office, through its Intellectual Property Branch, executed search warrants at two residences belonging to Lo Wei‑Jen, a recently retired senior vice president at TSMC. Investigators seized computers, USB drives, and other digital devices as evidence.

Additionally, a court authorized the seizure of Lo’s financial assets, including company shares and real estate, increasing legal pressure.

The investigation’s intensity suggests that authorities view these alleged trade‑secret leaks as more than a corporate dispute—they see it as a potential national security concern.

The Allegations: What TSMC Claims

TSMC has filed a lawsuit against Lo at the Intellectual Property and Commercial Court. The company alleges that he violated:

• The Trade Secrets Act
• Non-disclosure agreements
• Non-compete agreements

TSMC claims there is a strong likelihood that Lo used, disclosed, or transferred confidential company information to his new employer.

During his 21-year career at TSMC, Lo played a key role in developing and mass-producing some of the company’s most advanced chip-making processes, including:

• 5-nanometre technology
• 3-nanometre technology
• Cutting-edge 2-nanometre nodes

Even after his transfer in March 2024 from R&D to the corporate strategy division, TSMC alleges Lo continued to meet with R&D personnel to stay informed on sensitive developments—a detail that has heightened the company’s concerns.

Broader Context: Industry and National Security Stakes

This is not TSMC’s first encounter with trade‑secret theft allegations. Earlier in 2025, prosecutors detained a former engineer and two current engineers over suspected leaks of the 2-nanometre process.

Authorities invoked the National Security Act, highlighting the deep connection between semiconductor innovation, national defense, and global economic competitiveness.

Semiconductors power everything from smartphones and servers to AI systems and defense technologies. Protecting these secrets is vital not only for TSMC but also for Taiwan’s technological leadership globally.

TSMC has made it clear that it has zero tolerance for leaks, emphasizing that any compromise could harm both the company’s edge and Taiwan’s industrial security.

The Other Side: Resignation and Denial

Lo retired from TSMC in July 2025 and shortly after joined Intel, where he had previously worked for 18 years.

Intel responded by stating there is no reason to believe the allegations against Lo are valid. The company also emphasized its strict policies to prevent misuse of third-party intellectual property.

Intel described talent mobility—particularly among highly skilled engineers and executives—as a normal and healthy industry practice, downplaying concerns of improper IP transfer.

Currently, neither Intel nor Lo has issued further statements, and no formal admission of wrongdoing has been made.

Potential Consequences and Next Steps

This case extends beyond corporate law; Taiwan’s National Security Act means potential criminal consequences if sensitive technology is found to have been transferred to a foreign competitor.

Potential outcomes include:

• Confiscation of assets
• Restrictions on further knowledge transfer
• Possible criminal penalties for Lo

For Intel, an unfavorable verdict could result in reputational damage and increased scrutiny over hiring from competitors like TSMC.

For TSMC, the case tests the company’s ability to safeguard its intellectual property in a highly competitive environment where employee mobility is common.

The broader semiconductor industry could also see:

• Chilling effects on talent recruitment
• Tighter regulatory oversight
• Greater corporate scrutiny over employee transitions

The case highlights the geopolitical importance of semiconductor know-how. As nations compete for dominance in chip technology, human expertise and institutional memory are just as valuable as patents.

Implications for Industry and Global Supply Chains

The repercussions are likely to be broad:

• Slowed recruitment of experienced talent in advanced process technologies
• Tighter internal safeguards, such as stricter non-compete clauses and enhanced device monitoring
• Reinforced perspective that semiconductor knowledge is a national security asset

For the global supply chain, any disruption—legal or reputational—could affect chip production timelines, delivery schedules, and deployment of next-generation technologies.