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Beijing E-Town Semiconductor Technology, a prominent Chinese manufacturer of semiconductor equipment, has initiated a lawsuit against its American competitor, Applied Materials, alleging the theft of trade secrets.
According to the company, two employees from its subsidiary, Mattson Technology, stole critical production technology, resigned, and subsequently joined Applied Materials. There, they developed products utilizing the stolen technology and actively promoted these to Chinese customers. The announcement was made yesterday from Beijing.
The allegedly stolen technology is owned by Mattson Technology, a U.S.-based designer and manufacturer of semiconductor wafer processing equipment that E-Town acquired in 2016. The company also revealed that Applied Materials attempted to apply for a patent with China’s National Intellectual Property Administration, aiming to claim rights over the technology.
E-Town has filed the lawsuit in a Beijing court, requesting an order for Applied Materials to stop all infringing activities and pay damages equal to three times their losses, along with reasonable costs associated with halting the infringement. They are seeking a total compensation of around 100 million Chinese yuan (approximately 13.9 million U.S. dollars). The case has been accepted by the court, but a trial date has not yet been scheduled.
The company specializes in researching, designing, manufacturing, and selling essential equipment for integrated circuit production. Its products are part of the supply chains for the world’s top ten chipmakers and leading Chinese firms. Last year, approximately 67% of E-Town’s sales revenue came from the Chinese market.
Today, shares of E-Town on the Shanghai Stock Exchange fell 1.8%, closing at 22.46 yuan (about 3.13 USD), after reaching a high of 2.1% in morning trading.
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