By Debby Wu and Olivia Tam, Bloomberg
Prime US chip-equipment provider Utilized Supplies Inc. was sued by a rival in China over what that firm characterised as commerce secret theft, an extra escalation within the expertise struggle between the world’s two largest economies.
Beijing E-City Semiconductor Know-how Co. filed a lawsuit with the Beijing Mental Property Courtroom towards Utilized Supplies, in accordance with an organization assertion to the Shanghai Inventory Alternate.
The Chinese language chip-gear maker alleged that the Santa Clara, California-based firm illegally obtained, used and revealed its core applied sciences associated to the appliance of plasma supply in treating the floor of wafers, the assertion mentioned. The courtroom has filed the case however has not begun a trial, E-City added.
Utilized Supplies earlier employed two workers from E-City’s totally owned US subsidiary, Mattson, and so they had been aware about the Beijing firm’s proprietary plasma applied sciences, the submitting mentioned. Utilized Supplies filed a patent utility crediting the duo as inventors with the Nationwide Mental Property Administration in China after the 2 joined the Santa Clara firm, the Beijing agency mentioned, alleging that the content material revealed commerce secrets and techniques co-owned by E-City and Mattson.
“The patent application violated the rules of China’s Anti-Unfair Competition Law, and it infringes on trade secrets, and has caused significant damage to the plaintiff’s intellectual property and economic interests,” E-City mentioned within the submitting, including that Utilized Supplies can be suspected of promoting and promoting the applied sciences concerned within the case to Chinese language clients.
E-City is asking the courtroom to demand that Utilized Supplies cease utilizing its commerce secrets and techniques and destroy associated supplies. It’s additionally searching for about 100 million yuan ($13.9 million) in recompense for harm.
The Beijing Mental Property Courtroom didn’t reply a number of calls outdoors of normal hours. Utilized Supplies didn’t instantly reply to requests for remark.
Chip-gear expertise is a focus within the extended expertise struggle between the US and China. Up to now, the semiconductor manufacturing tools house remains to be dominated by the US, the Netherlands and Japan.
A yearslong US-led marketing campaign has prevented Chinese language corporations from securing Dutch provider ASML Holding NV’s state-of-the-art excessive ultraviolet lithography techniques, that are required to take advantage of cutting-edge chips for growing synthetic intelligence algorithms. ASML’s applied sciences additionally don’t work at a chipmaking plant with out help from US tools suppliers, together with Utilized Supplies and Lam Analysis Corp.
Whereas E-City’s transfer is likely to be seen as a part of China’s efforts to retaliate towards the US, the 2 corporations have their very own present dispute. In 2022, Utilized Supplies sued Mattson over alleged company espionage. Mattson denied any wrongdoing on the time.
–With help from Peter Blumberg and Brody Ford.
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Initially Revealed: August 14, 2025 at 7:34 AM PDT
