Chinese semiconductor company Beijing E-Town sues US firm for alleged leak of trade secrets

Beijing E-Town Semiconductor Technology Co, a Beijing-based semiconductor equipment firm, on Wednesday said it has sued US chip equipment supplier Applied Materials Inc for alleged trade secrets infringement, nbd.com.cn reported on Wednesday.

Applied Materials had illegally obtained and used Beijing E-Town's core technology secrets related to plasma sources and wafer surface treatment and applied for patents in China, said the Beijing E-Town in a filing on the Shanghai Stock Exchange.

Besides, Beijing E-Town said it had filed a lawsuit with the Beijing Intellectual Property Court seeking 99.99 million yuan ($13.94 million) in compensation. The case has been filed, but the trial has yet to begin.

Beijing E-Town stated that the lawsuit will not have a significant adverse impact on the company's operations, nor will it affect the company's normal production and operations. The ultimate actual impact will depend on the court's effective judgment.

Applied Materials, the defendant, did not immediately respond to a request for comment.

According to the Beijing E-Town's filing, Applied Materials had hired two former Mattson employees who had knowledge of the Beijing E-Town's core technology and is suspected of using the involved technology secrets to apply for patents. 

Beijing E-Town said that using high-concentration, stable and uniform plasma for wafer surface treatment is one of its key technologies, widely used in its semiconductor processing equipment for dry stripping, dry etching, surface treatment and modification. The company possesses leading, original technical capabilities in this field and possesses relevant technical secrets.

Applied Materials hired two employees who previously worked at Mattson Technology Inc (MTI), a wholly-owned subsidiary of the plaintiff. These two employees understood the company's core technologies for plasma generation and treatment methods and were familiar with and mastered the relevant equipment structures and processes. During their tenure at MTI, both employees signed confidentiality agreements, assuming strict confidentiality obligations regarding technical information, including the technical secrets involved in the case.

Evidence showed that after Applied Materials hired the two former Mattson employees, it submitted an invention patent application to the China National Intellectual Property Administration, in which the main inventors were the two aforementioned employees. The patent application disclosed the technical secrets involved in the case jointly owned by the plaintiff and MTI.

As a result, Applied Materials' actions violated China's fair competition law and constituted infringement of its trade secrets. The Beijing court has accepted the civil case but no court hearing has yet been held, Beijing E-Town said in the filing.

Founded in 2015, Beijing E-Town primarily engages in the research, development, production and sales of wafer processing equipment required for integrated circuit manufacturing. The company provides integrated circuit manufacturing equipment and supporting process solutions, including dry stripping equipment, rapid thermal processing equipment and dry etching equipment, to global integrated circuit manufacturers. The company was listed on the Shanghai Stock Exchange's Science and Technology Innovation Board on July 8, 2025.

(Global Times)