This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) climbed about 8% at Thursday’s open, despite news that Taiwanese authorities searched the home of its executive Wei-Jen Lo. Officials are investigating whether Lo, formerly of Taiwan Semiconductor (NYSE:TSM), may have taken sensitive technology related to advanced semiconductor processes.
During the raid, prosecutors seized computers and other materials. A court order also froze some of Lo’s assets, including real estate, as part of the inquiry. Taiwan Semiconductor (NYSE:TSM) has launched legal action, claiming Lo violated non-compete agreements and trade secrets regulations before leaving the company.
Lo joined Intel (NASDAQ:INTC) as vice president of research and development after retiring from Taiwan Semiconductor (NYSE:TSM) in July, where he held a senior role in corporate strategy and advanced node technology development.
Intel CEO Lip-Bu Tan rejected the allegations, telling Bloomberg they are speculation and emphasizing the company’s commitment to intellectual property rights.
The investigation comes as Intel (NASDAQ:INTC) navigates new risks tied to a recent $11.1 billion U.S. government stake, highlighting the company’s ongoing challenges in global semiconductor expansion.
On the positive side, analyst Ming-Chi Kuo said Apple (AAPL) is closer to choosing Intel as a foundry partner, boosting optimism around Intel’s 18A process and future chip orders.
The report suggested Apple has tested Intel’s design tools and is waiting for the next software release, raising investor expectations that Intel could secure a major foundry contract and strengthen its position in semiconductor manufacturing.