Last week, TSMC reportedly initiated an investigation into one of its former employees, Lo Wen-jen, who transitioned from retirement to a role at Intel. Lo previously served as the vice president of corporate strategy at TSMC before retiring in July. He was involved in the efforts to mass-produce chips at the Taiwanese firm, having spent over two decades there.

As reported by Bloomberg, Intel has denied allegations suggesting that this hiring was aimed at poaching trade secrets from TSMC. CEO Lip-Bu Tan stated: “It’s rumor and speculation. There’s nothing to it. We respect IP.”

Moreover, TSMC isn’t the only entity concerned about intellectual property. Kung Ming-hsin, the Economy Minister for Taiwan, reportedly stated, “The Ministry of Economic Affairs will cooperate (with prosecutors) by explaining the current control mechanisms for Taiwan’s core technologies and by assessing whether there are any concerns related to the national security law.”

This investigation does not have any formal charges or allegations yet, raising questions about whether this is more about posturing than actual risk.

Intel’s Response to TSMC
(Image credit: Intel)

Intel finds itself in a unique situation, facing renewed support from the US government and companies like Nvidia after years of setbacks. It’s crucial for Intel to maintain robust chip manufacturing capabilities, given its historical significance in the semiconductor industry.