Taiwan Raids Former TSMC Executive's Home in Trade Secrets Probe Linked to Intel

Taiwanese prosecutors raided the home of former TSMC Senior Vice President Lo Wei-jen on November 26, 2025, seizing digital devices and freezing assets amid allegations of trade secret leaks to his current employer, Intel [1][2][3]. TSMC filed a civil lawsuit against Lo, while Intel denied any wrongdoing, citing strict policies against using third-party confidential information [3]. Taiwan’s Economic Minister highlighted national security implications, as semiconductor IP is critical to Taiwan’s economic stability [2].

Market data shows Intel (INTC) rose 6.51% to $39.20 on November 28, outperforming the Technology sector (down 0.12%) [0]. This suggests short-term market optimism about potential benefits from the alleged leaks, aligning with user-generated discussions. In contrast, TSMC (TSM) saw minimal movement (+0.12%), indicating investors view the probe as a contained IP protection issue [0].

1. Market Optimism vs. Long-Term Risks
   : The disconnect between INTC’s price rise and underlying regulatory/supply chain risks (Intel’s dependency on TSMC’s fabs) underscores investor focus on short-term potential over long-term stability [0].
2. National Security Angle
   : The case’s classification as a national security matter by Taiwan’s government elevates its severity beyond typical IP disputes, potentially leading to stricter penalties [2].
3. IP Protection Precedent
   : TSMC’s proactive legal action may set a benchmark for semiconductor industry IP enforcement, enhancing its reputation among investors [3].

• Intel
  : Regulatory penalties (violations of Taiwan’s national security laws), supply chain disruptions (strained TSMC relations), and reputational damage [2].
• TSMC
  : Erosion of investor confidence if leaks are confirmed, though proactive measures mitigate this risk [3].

• TSMC
  : Strengthening its IP protection image to attract long-term investors [3].
• Industry
  : Prompting wider improvements in IP security protocols.

This event involves a regulatory probe into alleged trade secret leaks from TSMC to Intel. Market reactions show short-term optimism for INTC, but decision-makers should monitor investigation progress, TSMC-Intel relations, and regulatory actions. Critical data points include INTC’s 6.51% gain (Nov 28), TSM’s 0.12% rise, and the Technology sector’s 0.12% decline [0].

Note: User-generated discussions (Reddit) highlight Intel’s dependency on TSMC’s fabs, a relevant risk factor.