TSMC confirmed it has filed a lawsuit against former Senior Vice President Dr. W. C. Wu, alleging violations of his employment contract, non-compete agreement, and Taiwan’s Trade Secrets Act.
Dr. Wu retired from TSMC in July and joined Intel as Executive Vice President in late October. The legal action immediately drew widespread attention across the semiconductor industry.
Intel swiftly responded through an internal memo, firmly rejecting the allegations as baseless.
Intel’s Internal Response #
Intel CEO Pat Gelsinger stated in a company-wide memo that Intel fully supports Dr. Wu’s appointment. He emphasized that:
- Intel strictly prohibits the transfer or use of third-party confidential information.
- Internal reviews show no evidence of intellectual property risks.
- The company remains confident in its hiring decision.
The memo explicitly named Dr. Wu, underscoring Intel’s clear stance and signaling that the dispute will not affect the established leadership transition.
TSMC’s Concerns #
Dr. Wu spent decades at TSMC, contributing to multiple phases of advanced process R&D and overseeing wafer manufacturing technology. His seniority and long exposure to key development programs naturally heighten sensitivity around his move to Intel.
TSMC argues that:
- Dr. Wu had access to critical manufacturing data.
- He remains bound by post-employment obligations.
- Protecting technical information and key personnel is essential as competition in advanced nodes accelerates.
Technical Roadmap Differences Reduce Overlap #
Industry analysts note that Intel and TSMC currently pursue different manufacturing technology paths, which reduces the potential for direct technology transfer:
- Intel: Advancing 18A, PowerVia backside power delivery, RibbonFET GAA transistors, and early adoption of High-NA EUV.
- TSMC: Pursuing an alternative evolution of GAA and EUV scaling with limited overlap in process architectures.
Because of this divergence, analysts believe the lawsuit centers more on contractual compliance than on direct process technology leakage.
Why Intel Wants Dr. Wu #
Dr. Wu’s experience extends beyond process technology. His background includes:
- supply chain strategy
- fab planning
- production line optimization
- assessing customer requirements
As Intel expands its IFS (Intel Foundry Services) business and scales U.S. domestic manufacturing, such experience is strategically important.
Intel reiterated that:
- It values his management expertise, not proprietary information.
- The company forbids the use of trade secrets from prior employers.
- Its internal hiring procedures were lawful and fully vetted.
A Sensitive Moment for Two Industry Giants #
Both companies are navigating critical transitions:
- TSMC is expanding capacity worldwide and strengthening its supply chain.
- Intel is racing to reestablish itself as a top-tier advanced manufacturing leader.
Against this backdrop, senior technical talent moving between competitors is especially sensitive and prone to heightened external scrutiny.
What Happens Next? #
With the lawsuit officially filed, the dispute enters the legal process. The outcome will hinge on:
- specific contract terms
- interpretation of post-employment restrictions
- evidence regarding confidential information and obligations
TSMC aims to reinforce internal security and compliance frameworks, while Intel maintains that its hiring process was proper and that no proprietary information is at risk.
For now, the final resolution remains uncertain, and further developments will depend on court proceedings.