This article first appeared on GuruFocus.
Investors watching Intel (NASDAQ:INTC) this week are getting a plot twist just as the entire semiconductor space positions for Nvidia’s earnings. Intel pushed back against allegations from Taiwan Semiconductor Manufacturing (NYSE:TSM) that former senior vice president Wei-Jen Lo may have leaked confidential information after joining the U.S. chipmaker in October. In an emailed statement, Intel said it has no reason to believe the claims have merit and reiterated that its policies prohibit the transfer or use of any third-party intellectual property. The company also described Lowho returned after an earlier 18-year stint at Intel and a 21-year run at TSMCas a respected industry figure with a long track record of technical leadership.
TSMC has taken a different view, filing a lawsuit in Taiwan’s Intellectual Property and Commercial Court and arguing there is a high probability Lo could have used, disclosed or transferred its trade secrets. Taiwan’s economy ministry signaled it will cooperate on determining whether the case touches on core technologies or possible National Security Act violations. Lo did not respond to comment requests, and Intel framed the situation as part of normal talent movement in a globally competitive industry, though the timing could be raising eyebrows across the market.
All of this lands as AMD (NASDAQ:AMD), Intel and TSMC brace for Nvidia’s (NASDAQ:NVDA) resultsan event that could be setting the tone for how investors position around advanced manufacturing, supply visibility and sector leadership. With Lo having contributed to TSMC’s push into 5-nm, 3-nm and 2-nm mass production, the dispute introduces an added layer of uncertainty at a moment when traders are already watching every signal from Nvidia for clues on demand trajectory and competitive intensity.