Major Chinese Semiconductor Manufacturer Sues Applied Materials for Trade Secret Theft, Demands 99.99 Million Yuan in Compensation

On the 13th, Chinese semiconductor equipment manufacturer YTMC announced that it has filed a lawsuit against its U.S. competitor Applied Materials, accusing the latter of illegally obtaining and using the company's core trade secrets related to plasma sources and wafer surface processing. The company is seeking 99.99 million yuan (hereinafter referred to as RMB) in compensation.

According to foreign media reports, YTMC stated that Applied Materials had also disclosed these trade secrets by filing a patent application in China and claimed the patent application rights as its own. As a result, YTMC has filed a lawsuit with the Beijing Intellectual Property Court.

YTMC stated that using high-concentration, stable, and uniform plasma for wafer surface processing is one of its key technologies. The related technology is widely used in the company's semiconductor processing equipment, including dry stripping, dry etching, surface treatment, and modification. The company possesses leading original technological capabilities in this field and owns the relevant trade secrets.

YTMC also mentioned that Applied Materials hired two employees involved in the case who had previously worked at Mattson Technology (hereinafter referred to as MTI), a wholly-owned subsidiary of YTMC. These employees were familiar with the core technology related to plasma generation and processing methods, as well as the relevant equipment structure and technical processes. During their tenure at MTI, both employees had signed confidentiality agreements, undertaking strict obligations to protect technical information, including the trade secrets involved in the case.

YTMC pointed out that evidence shows after hiring these two employees, Applied Materials submitted an invention patent application to the China National Intellectual Property Administration, listing the aforementioned employees as the primary inventors. The patent application disclosed the trade secrets jointly owned by YTMC and MTI that are central to the case.