The battle for semiconductor supremacy is intensifying, with Taiwan Semiconductor Manufacturing Company (TSMC) launching aggressive legal action against a former senior executive who now works for competitor Intel. This dramatic escalation coincides with market speculation about substantial new manufacturing investments that could reshape the competitive landscape.
Legal Battle Over Trade Secrets Intensifies
TSMC has initiated legal proceedings against Wei-Jen Lo, previously serving as Senior Vice President at the company, alleging he transferred confidential research data concerning advanced 2nm, 3nm, and 5nm chip fabrication processes to his new employer, Intel. The lawsuit represents a significant move by the Taiwanese chipmaker to protect its technological advantages.
For market observers, this legal confrontation underscores the fierce competition characterizing the race toward next-generation angstrom-scale semiconductors. Intel’s development of its “18A” technology positions it as a direct challenger to TSMC’s market leadership, making the transfer of high-level personnel a substantial concern for proprietary information security. According to available reports, prosecutors have already seized electronic devices as part of their investigation, while Intel has publicly denied all allegations.
Speculation Mounts Over Major Capital Investment
While defending its intellectual property in court, TSMC appears to be simultaneously preparing for substantial capacity expansion. Unconfirmed reports from Liberty Times suggest the company is planning construction of three new facilities in Southern Taiwan dedicated to 2nm chip production.
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The projected investment for this ambitious project reaches approximately 900 billion New Taiwan dollars, equivalent to roughly $28 billion. Should these plans materialize, TSMC would significantly widen its manufacturing capabilities, strengthening its competitive position during the artificial intelligence boom. Investors are awaiting official confirmation, recognizing that such expansion could secure the company’s market dominance for years.
Financial Strength and Market Performance
TSMC’s financial performance provides a strong foundation for these strategic moves. Recent quarterly results substantially exceeded market expectations, driven by relentless demand for AI accelerators. The company’s decision to pursue legal action is therefore interpreted by analysts not as an indication of vulnerability, but as a confident assertion of its intellectual property rights.
This confidence appears reflected in the company’s stock performance. Although shares experienced a minor decline on Friday, closing at €250.50, the broader trend remains decidedly positive. Since the beginning of the year, TSMC’s stock has delivered impressive gains exceeding 27%. Market participants will closely monitor developments in the coming weeks, particularly regarding confirmation of the rumored investment and November revenue figures scheduled for release on December 10th.
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