Probe launched into alleged theft of TSMC secrets by ex-executive

Taipei, Nov. 19 (CNA) Prosecutors have launched an investigation into allegations that a former executive of Taiwan Semiconductor Manufacturing Co. (TSMC) stole the chipmaker's secrets related to its advanced processes and transferred them to a foreign entity.

The Taiwan High Prosecutors Office said Tuesday its Intellectual Property Branch has initiated the probe into the actions of Lo Wei-jen (羅唯仁), who allegedly stole restricted information on TSMC's 2 nanometer, A16 and A14 processes before retiring as TSMC's senior vice president for corporate strategy development in July.

Fears are that he then turned over the trade secrets to Intel, his former employer, when he returned to work at the American chipmaking rival in late October, a few months after retiring from TSMC.

According to local media reports, Lo asked his subordinates before retiring to brief him about these advanced technologies and took the confidential documents with him.

What sparked suspicions of wrongdoing, according to the Liberty Times, is the sheer volume of information Lo took with him when he left TSMC and then unexpectedly turning up at Intel.

According to the newspaper, Lo took more than 80 boxes of data and books when he departed, raising internal suspicions at TSMC.

Lo left TSMC after 21 years of service and had been seen as one of the most influential figures in the company's high-end technology development, reports said.

Before joining TSMC in 2004, Lo worked at Intel as director of advanced technology development and general manager of the U.S. chipmaker's fab in Santa Clara, California, in charge of the graphics processing unit's manufacturing operations, the reports added.

According to the news reports, TSMC is collecting evidence in preparation for legal action against Lo.

Prosecutors said the investigation aimed to determine whether Lo has been involved in any wrongdoing.

Commenting on Lo's involvement, Economics Minister Kung Ming-hsin (龔明鑫) said Wednesday the ministry is seeking a better understanding of the situation.

Kung said the MOEA will work closely with the Taiwan High Prosecutors Office to see whether Lo has violated the National Security Act, given that semiconductors have become a core technology in Taiwan's industrial development.

The MOEA is also watching closely whether Lo's actions have undermined Taiwan's semiconductor supply chain and its ties with clients.

The most advanced process currently being mass produced by TSMC is the 3nm process. It is scheduled to start mass production of the 2nm process later this year, the A16 process in the first half of 2026, and the A14 process in 2028.