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Investing.com -- Beijing E-Town Semiconductor Technologies has filed a lawsuit against U.S. chip equipment supplier Applied Materials for alleged trade secrets infringement, the Chinese company announced Wednesday.
The semiconductor equipment firm, which is backed by Beijing’s government, claims Applied Materials illegally obtained and used its core technology secrets related to plasma sources and wafer surface treatment, according to a filing on the Shanghai Stock Exchange.
Beijing E-Town is seeking 99.99 million yuan ($13.94 million) in compensation. The company alleges that Applied Materials disclosed technical secrets by applying for a patent in China and claiming the patent’s application rights.
The lawsuit was filed with the Beijing Intellectual Property Court. Beijing E-Town claims Applied Materials hired two former employees of Mattson Technology, a California-based semiconductor wafer processing equipment designer and manufacturer that Beijing E-Town acquired in 2016. These former employees were later listed as the principal inventors behind a patent filed by Applied Materials in China.
According to Beijing E-Town, the patent filed with China’s intellectual property administration disclosed confidential technical know-how jointly held by Beijing E-Town and Mattson. The Beijing firm stated that Applied Materials’ actions violated China’s fair competition law and constituted infringement of its trade secrets.
This legal battle has a complex history. In 2022, Applied Materials sued Mattson, alleging that it had hired its former employees with the intention of stealing trade secrets. Mattson countersued Applied Materials in 2023 with similar accusations.
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