E-Town Semiconductor sues Applied Materials for trade secret theft, seeking compensation of 99.99 million RMB

Mainland semiconductor equipment manufacturer E-Town Semiconductor (688729.SH) has accused American semiconductor equipment giant Applied Materials (AMAT.US) of stealing trade secrets and has filed a lawsuit seeking compensation of 99.99 million yuan (approximately 13.9 million USD).

The company announced that Applied Materials hired two former employees of E-Town Semiconductor, who possess proprietary knowledge of the core plasma generation and processing technology of its wholly-owned subsidiary Mattson Technology, as well as the equipment design and manufacturing processes. The two individuals submitted a patent application to the National Intellectual Property Administration, disclosing related technical secrets.

E-Town Semiconductor did not disclose specific product models but confirmed that the products involved have been sold in the Chinese market. The company also requested the court to issue an injunction prohibiting Applied Materials from manufacturing or commissioning others to manufacture any products using its trade secrets within China, and demanded the destruction of the infringing products