Taiwanese prosecutors have raided the homes of former Taiwan Semiconductor Manufacturing Co. (TSMC) executive Wei-Jen Lo, seizing computers and other assets, as part of an investigation into alleged trade secret leaks to US chipmaker Intel.
Lo retired from TSMC in July after more than 20 years as senior vice president overseeing research and technology development, including the mass production of advanced AI chips.
He joined Intel in October as vice president of research and development. Prior to his tenure at TSMC, Lo worked for Intel for 18 years in California.
The raids, conducted at Lo's Taipei and Hsinchu residences, follow TSMC's lawsuit filed in Taiwan's Intellectual Property and Commercial Court.
The company alleges Lo violated non-compete and confidentiality agreements and "likely transferred" sensitive technology to Intel. Prosecutors obtained court approval to freeze Lo's real estate and stock holdings.
In a statement, the company said it maintains "rigorous policies and controls that strictly prohibit the use or transfer of any third-party confidential information" and sees "no reason to believe there is any merit to the allegations involving Mr Lo."
Intel added that talent movement between companies is common and healthy for the industry.
TSMC, now valued at over US$1.15 trillion, is the world's largest contract chipmaker and a key supplier to Apple, Nvidia and other global tech firms.
The company's manufacturing techniques are considered vital to both its market dominance and Taiwan's national security.
Taiwan's Ministry of Economic Affairs said it is closely monitoring the situation and working with prosecutors to assess potential risks to the semiconductor sector under the National Security Act.
Industry analysts note that while TSMC regularly sees employees move to competitors, Lo's seniority and access to advanced technology make this case unusual.
The dispute highlights the growing tensions in the global chip industry as Intel seeks to close the gap with TSMC and Samsung.