Beijing E-Town Semiconductor Files Lawsuit Against Applied Materials for Alleged Trade Secret Theft
In a significant development, Chinese semiconductor equipment maker Beijing E-Town Semiconductor Technology has filed a lawsuit against US-based Applied Materials in the Beijing Intellectual Property Court. The lawsuit alleges that Applied Materials has been promoting and selling products using technical secrets to customers in China, specifically related to plasma source treatment technology for wafer surface processing [1][2][3][4][5].
According to Beijing E-Town, two former employees of its acquired subsidiary, Mattson Technology, who joined Applied Materials, took core proprietary technologies with them. The lawsuit further claims that Applied Materials then submitted a patent application in China disclosing these trade secrets, which were jointly owned by Beijing E-Town and Mattson.
Beijing E-Town is seeking damages of approximately 99.99 million yuan (around $13.9 million), reflecting actual losses plus triple punitive damages under Chinese law. The company also wants an injunction to stop Applied Materials from using the trade secrets and an order for the destruction of materials and products that infringe on these secrets.
The case involves allegations that Applied Materials, based in Santa Clara, California, has applied for a mainland patent involving its technology. However, no response has been received from the company regarding the allegations. The Beijing Intellectual Property Court has accepted the submission, but no hearing date has been announced [1][2][3][4][5].
Interestingly, the legal case is seen as an escalation of the ongoing US-China technology rivalry in the semiconductor sector. The disputed plasma technology is crucial for processes like dry photoresist removal, dry etching, and surface modification in semiconductor manufacturing equipment.
Meanwhile, the share price of Beijing E-Town was not directly affected by the case against Applied Materials, according to the information in the article. However, the company's shares closed at 22.46 yuan on Thursday, marking a 1.84% decrease, which occurred independently of the case against Applied Materials. No information was provided about the potential impact of the case on Beijing E-Town's business operations or financials [1][2][3][4][5].
[1] https://www.reuters.com/business/beijing-etown-sues-applied-materials-alleged-intellectual-property-theft-2021-09-16/ [2] https://www.bloombergquint.com/onweb/beijing-etown-sues-applied-materials-for-alleged-intellectual-property-theft [3] https://www.scmp.com/tech/policy/article/3145987/chinese-semiconductor-equipment-maker-etown-sues-applied-materials-alleged [4] https://www.nasdaq.com/articles/beijing-etown-sues-applied-materials-for-alleged-intellectual-property-theft-2021-09-16 [5] https://www.reuters.com/legal/government/chinese-semiconductor-equipment-maker-etown-sues-applied-materials-alleged-intellectual-2021-09-16/
Technology is at the heart of the ongoing US-China rivalry in the semiconductor sector, as Beijing E-Town Semiconductor Technology accuses US-based Applied Materials of using stolen trade secrets in China, specifically plasma source treatment technology for wafer surface processing in semiconductor manufacturing equipment. Furthermore, the lawsuit alleges that Applied Materials has applied for a patent in China involving their technology, potentially intensifying the technology trade disagreements between the two nations.
