US company Applied Materials sued China-owned Mattson for a 14-month attempt to steal chip designs and poach key staff. However, the Beijing-backed company has claimed no misconduct on its part.
Applied Materials, a US semiconductor corporation, has filed a lawsuit against a China-owned competitor for what it claims was a 14-month-long campaign to acquire some of its most significant secrets, including the theft of chip designs and the poaching of key employees.
Applied Materials Accused Mattson of Stealing 17 of Its Best Engineers
In 2016, the largest US chipmaking equipment provider accused Mattson of poaching 17 of its top engineers in over a year. Mattson is a business based in Fremont, California, and was bought by China-backed Beijing E-Town Dragon Semiconductor Industry Investment Center.
According to court documents filed by Applied Materials of Santa Clara, California, via Bloomberg's report, the poached group comprised a senior department manager and researchers who had worked together for years. They allegedly had access to confidential knowledge about the company's chipmaking processes and its future roadmap.
In 2022, the firm filed suit against both Mattson and its most recent departing employee, whom it said had produced irrefutable proof of espionage.
The US company stated in a March 2022 filing that "many of these documents are highly sensitive, technical, and contain Applied's trade secrets and know-how which would give Mattson years of competitive advantage in its technology trajectory and development."
Beijing's municipal government supports and manages the Beijing E-Town Dragon Semiconductor Industry Investment Center.
Applied Materials issued a statement saying, "We are taking legal action to ensure our intellectual property rights are protected," adding that the company "vigorously safeguards" its IP and declining to elaborate the situation due to current litigation.
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However, Mattson Denied Any Wrongdoing
This previously unreported litigation is progressing as worries rise about China's willingness to bypass US restrictions and establish a world-class semiconductor sector.
Nevertheless, Mattson has claimed no misconduct on its part. A spokesperson told Bloomberg, "The claims against Mattson have no merit and will be resolved in our favor."
They added, "The complaint in this case was filed 16 months ago and it did not include any evidence to support the allegations against Mattson. No evidence has appeared since then despite a vigorous court process, and none will appear in the future because the allegations are false."
The most recent defector, Canfeng "Ken" Lai, admitted in a court statement that he had transmitted emails from his Applied Materials account to his personal account. But he said that it was merely to save souvenirs of his work.
He said that in his new position at Mattson, he had no intention of using or disclosing any proprietary knowledge from his previous employer, Applied Materials. He added that he has never taken any proprietary information from Applied Materials or shared it with anybody outside the company.
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