Taiwan raided homes belonging to an Intel vice president on Thursday, investigating the possibility he improperly took trade secrets when he left Taiwan Semiconductor Manufacturing Co. earlier this year. Reuters reported that investigators seized Wei-Jen Lo’s computers and issued a statement saying they suspect him of violating Taiwan’s National Security Act.
TSMC, the world’s largest chipmaker, sued Lo on Tuesday. The company asserted, “There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade secrets and confidential information to Intel.”
Intel CEO Lip-Bu Tan rejected the allegations Wednesday, telling employees “Based on everything we know today, we see no merit to the allegations involving Wei-Jen, and he continues to have our full support.”
Neither Intel nor TSMC responded to requests for comment Thursday on the raid in Taiwan.
Intel and TSMC are longtime rivals. In the past several years, though, TSMC has taken a commanding lead with more advanced manufacturing technology. Intel is trying to catch up and hopes to win some of TSMC’s manufacturing clients.
Thursday’s raid underscores the huge importance Taiwan places on its semiconductor industry — but also raises potential geopolitical issues. The U.S. is a key ally of Taiwan and a bulwark against potential aggression from China, which considers the nation part of its territory.
The Trump administration invested nearly $9 billion in Intel last summer, making the U.S. government the chipmaker’s largest shareholder.
The U.S. State Department said it did not have an immediate comment on Thursday’s raid.
