The industrial espionage scandal between Intel and the world's largest chipmaker is growing

Prosecutors in Taiwan said on Thursday that investigators raided the homes of a former top executive of Taiwan Semiconductor Manufacturing Company (TSMC) and seized computers after the chipmaker accused him of leaking trade secrets to his new employer, Intel, Reuters reports.

TSMC, the world's largest custom chipmaker and a major supplier to companies such as Nvidia, said on Tuesday it had filed a complaint with Taiwan's Intellectual Property and Commercial Court against Wei-Jen Lo, its former senior vice president.

The intellectual property division of Taiwan's prosecutor's office said in a statement that Lo is suspected of violating the island nation's National Security Law.

Two of Lo's homes were searched Wednesday and computers, USB sticks and other evidence were seized, prosecutors said.

A court also approved the request to seize Lo's shares and real estate. It and Intel did not immediately respond to a request for comment.

Intel says its new director is a model of integrity

Earlier on Thursday, Intel denied TSMC's allegations.

“Based on all the information we have, we have no reason to believe that the allegations against Mr. Lo have any basis,” Intel said in an emailed statement to Reuters.

Intel stated that the company maintains rigorous policies and controls that strictly prohibit the use or transfer of any confidential information or intellectual property belonging to third parties.

“We take these commitments very seriously,” Intel emphasized.

The US chipmaker also said it welcomed Lo back to the office and that he is widely respected in the semiconductor industry for his “integrity, leadership and technical expertise”. “The mobility of talent between companies is a common and healthy part of our industry, and this situation is no exception,” the company added.

TSMC's allegations against its former vice president

Lo, who helped TSMC bring its next-generation 5nm, 3nm and 2nm processors to mass production, joined Intel in October after retiring from TSMC at the end of a 21-year career with the company.

Before joining TSMC in 2004, Lo worked at Intel for 18 years.

TSMC said in a statement that “there is a high likelihood that Lo will use, divulge, disclose or transfer TSMC's trade secrets and confidential information to Intel, making legal action necessary.”

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