Beijing E-Town Semiconductor Sues Applied Materials for Trade Secrets

Beijing E-Town Semiconductor Technology has initiated legal action against the American chip equipment manufacturer Applied Materials, alleging theft of trade secrets. The lawsuit, filed in a Beijing court, seeks damages amounting to CNY100 million (approximately $13.9 million) and claims that Applied Materials unlawfully acquired and utilized proprietary technology related to plasma sources and wafer surface treatment.

In its official announcement, Beijing E-Town Semiconductor Technology stated that two former employees of its subsidiary, Mattson Technology, were hired by Applied Materials. The company accuses the defendant of subsequently applying for a patent in China that incorporates its technical secrets, naming these employees as primary inventors. This move is viewed as a serious infringement on Beijing E-Town Semiconductor Technology’s intellectual property rights and economic interests.

The lawsuit asserts that Applied Materials’ actions have caused “serious damage” to the plaintiff’s proprietary information. As part of the legal proceedings, Beijing E-Town Semiconductor Technology is demanding that Applied Materials cease the use of its technical secrets and destroy any products developed using the infringing technology.

Broader Context of Semiconductor Industry Competition

This legal battle comes at a time of heightened competition in the semiconductor industry, particularly as U.S. restrictions on advanced technology exports continue to expand. Recent reports indicate that several high-profile incidents involving alleged chip technology theft have surfaced, further complicating the landscape.

For instance, the Taiwan Semiconductor Manufacturing Company (TSMC) recently terminated the employment of multiple staff members who reportedly attempted to access confidential data related to the development and production of 2nm chip technology. Additionally, U.S. authorities arrested two Chinese nationals on charges of illegally exporting advanced chips, underscoring the growing scrutiny over intellectual property and technology transfers in the sector.

The outcome of the lawsuit between Beijing E-Town Semiconductor Technology and Applied Materials could have significant implications for the semiconductor industry, as it reflects ongoing tensions surrounding intellectual property rights and competition in a rapidly evolving technological landscape. As both companies prepare for the legal proceedings, the case is likely to attract considerable attention from industry stakeholders and regulatory bodies alike, emphasizing the critical nature of protecting technological advancements in an increasingly competitive global market.