Juheng.com reported that TSMC had previously accused the former manager of its procurement department, surnamed Xue, of violating the competition agreement by taking a position in a Chinese company five months after leaving the company. Today (April 20), the second-instance judgment of the Taiwan High Court of China was released, and the man surnamed Xue must compensate TSMC 2.5 million NT dollars (including the return of compensation).
The case can be traced back to 2016. Xue Nan resigned in July of the same year after negotiation for violating professional ethics in May, and TSMC gave him a special compensation of more than NT$1.17 million.
However, Xue Nan joined Changjiang Storage and Wuhan Xinxin as vice president of procurement in December of the same year.
Image source: Central News Agency
Xue Nan signed a competition agreement during his tenure at TSMC, stipulating that within 18 months after his departure, he shall not be employed by competitors in semiconductor wafer manufacturing and other related services, nor shall he provide any services for competitors. TSMC said that Xue Nan joined the company in 1999 and was promoted to the manager of the Purchasing Office in July 2011. He was exposed to many business secrets and trade secrets, including the specifications, costs, quantities of raw materials between TSMC and suppliers, as well as the information contained in the order contracts, and even Familiar with production schedule, production capacity and new plant construction planning.
TSMC sued Xue Nan to the Taoyuan District Court on the grounds that he violated the competition agreement. The first instance ruled that Xue Nan must compensate TSMC 2.5 million Taiwan dollars (including the return of compensation). After the case was appealed, the High Court upheld the judgment of the first instance.