TSMC stock falls as it sues former exec alleging he took trade secrets to Intel

Taiwan Semiconductor Manufacturing Company (TSMC) has initiated legal proceedings against a former executive, accusing him of unlawfully transferring sensitive information to Intel. Wei-Jen Lo, who spent over two decades at TSMC before departing in July to join Intel, is at the center of this controversy, with the chipmaker alleging he violated his employment contract and non-compete agreement. TSMC's lawsuit cites potential breaches of the Trade Secrets Act, asserting that there is a significant risk that Lo may disclose or utilize the company's confidential data within Intel. This legal move comes as TSMC's stock experienced a decline, dropping over 3% following the announcement. The allegations have prompted Taiwanese authorities to launch an investigation into the matter. Meanwhile, Intel has not provided an immediate response to requests for comment. Intel's CEO, Lip-Bu Tan, emphasized last week that the company is committed to respecting intellectual property rights and denied any involvement in wrongdoing related to the situation. In the wake of these developments, Intel's stock also saw a decrease, falling 1.5% in early trading.