Taiwan Semiconductor Manufacturing (TSMC), the world's largest chip foundry, has filed a lawsuit against its former senior vice president Lo Wei-jen, accusing him of violating non-compete agreements and trade secret laws by allegedly taking confidential 2nm process technology to Intel.

The case centers on Lo, a 75-year-old semiconductor veteran who spent 21 years at TSMC after an 18-year career at Intel. During his tenure at TSMC, Lo led advanced process development from 28nm to 2nm nodes and holds over 1,500 patents. He retired in July 2023 after receiving praise from TSMC founder Morris Chang.

TSMC claims Lo misrepresented his post-retirement plans, stating he would pursue academic work while secretly preparing to join Intel. The company alleges Lo systematically collected sensitive technical data on 2nm, A16, and A14 processes in his final months, including specifications, patents, and production modules. He reportedly took over 20 boxes of handwritten notes and copied documents upon departure.

The 2nm technology represents TSMC's most advanced manufacturing capability, scheduled for mass production in late 2025. Its potential leakage could give Intel a significant competitive advantage in closing the process technology gap.

Intel CEO Pat Gelsinger has dismissed the allegations as "baseless rumors," though the timing is notable as Intel attempts to regain process leadership through its 18A node development. TSMC's lawsuit comes just months after another case involving alleged technology theft by employees joining Tokyo Electron.

This legal battle highlights intensifying competition in advanced semiconductor manufacturing, where TSMC currently leads with 2nm yields around 65%, compared to Intel's reportedly lower 18A node yields. The outcome could set important precedents for intellectual property protection in the global chip industry.