US Chip Equipment Supplier Applied Materials Charges Beijing Government Backed Rival Of Data Embezzlement

Applied Materials, Inc AMAT prosecuted a Chinese-owned rival for allegedly trying to steal some of its most valuable secrets, including covert transfers of semiconductor equipment designs.

The chipmaking equipment supplier accused Mattson, owned by Beijing E-Town Dragon Semiconductor Industry Investment Center, of hiring away 17 of its most senior engineers over just over a year, Bloomberg cites court documents.

The allegations included a senior department manager and researchers privy to sensitive information like chipmaking processes.

The lawsuit flagged the documents as highly sensitive and containing Applied’s trade secrets that could give Mattson years of competitive advantage in its technology trajectory.

Beijing government backs and operates Beijing E-Town Dragon Semiconductor Industry Investment Center. Mattson has denied any wrongdoing.

Applied Materials is known for its sophisticated equipment for fabricating chips, a vital component for industries from defense to EVs and computing.

The U.S. has long accused China of corporate spying to obtain trade secrets from Western tech firms, allegations that Beijing has repeatedly denied.

In 2023, ASML Holding NV ASML blamed a former China-based employee for helping steal confidential technological information. This week, South Korean prosecutors charged a former Samsung Electronics Co SSNLF executive with trying to set up an entire semiconductor plant in China based on stolen blueprints and designs. 

Price Action: AMAT shares traded lower by 1.59% at $138.91 premarket on the last check Thursday.

Image by Tumisu from Pixaby