Taiwanese authorities have launched an investigation into former TSMC R&D manager Wei-Jen Lo, linked to national security concerns. The primary reason for the investigation is Lo’s alleged involvement in the “transfer of trade secrets to a foreign company.” Authorities are investigating whether Lo took key technological documents with him when he moved from TSMC to rival Intel.

Trade secrets may have been stolen

Wei-Jen Lo, a long-time executive at TSMC and Intel, spent 21 years at the Taiwanese foundry giant and built one of the strongest semiconductor R&D teams in the industry. Lo retired from the Taiwanese company this year and returned to Intel approximately three months later, at the end of October, as Vice President of R&D.

However, news sources allege that while Lo was a senior executive at TSMC, he instructed his units to obtain copies of confidential technical documents related to N2, A16, A14, and later process technologies. Because his high-ranking position made these requests seem routine, TSMC’s security system allegedly did not raise any alerts at the time. It is reported that Lo was not required to sign the non-compete agreement, which is standard for senior executives and prevents them from working for rival companies for 18 months, because the company believed Lo had truly retired.

TSMC is currently investigating whether Lo actually received confidential information. Lo most recently served as senior vice president of technology development within TSMC’s R&D organization. Before joining TSMC, he held various technical and production roles at Intel between 1997 and 2000.

The potential benefit to Intel from TSMC’s confidential documents regarding N2, A16, A14, and later versions is believed to be limited. Intel’s own 18A manufacturing process is already in mass production, and only Intel engineers can fine-tune it. Furthermore, Intel’s 18A manufacturing process differs significantly from TSMC’s N2 and A16 processes.