On Tuesday, Nov. 25 TSMC announced that it has filed a lawsuit against its former Senior Vice President Wei-Jen Luo with the Intellectual Property and Commercial Court. The lawsuit is based on the employment contract between TSMC and Luo, the non-compete agreement Luo signed during his tenure, and relevant provisions under the Trade Secrets Act.
According to TSMC’s press release, Luo joined the company in July 2004 (Year 93 of the ROC calendar) as Vice President. He was promoted to Senior Vice President in February 2014 and officially retired from TSMC on July 27 of this year.
TSMC stated that in March 2024, Luo was transferred to the Corporate Strategy Development Division as Senior Vice President. The department functioned as an advisory unit to the Chairman and CEO, and did not require Luo to oversee or manage R&D operations. However, after assuming the new role, Luo continued to request meetings with the R&D department and access to information regarding ongoing and future advanced process technology development.
TSMC’s confidentiality clause
TSMC noted that Luo had signed confidentiality clauses and a post-employment non-compete agreement during his time at the company, committing not to work for a competitor after leaving.
During Luo’s exit interview on July 22, TSMC’s General Counsel, Shuhua Fang, provided him with a reminder letter to review in detail. Fang also explained the obligations of the post-employment non-compete restriction and inquired about Luo’s plans after leaving. Luo replied that he intended to join an academic institution and did not disclose that he would be joining Intel.
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TSMC stated that immediately after his departure, Luo went to Intel to serve as Executive Vice President (EVP). The company believes there is a high possibility that Luo may use, disclose, transfer, or otherwise provide TSMC trade secrets or confidential information to Intel. Therefore, TSMC determined it necessary to pursue legal action, including claims for breach of contract.
