Beijing E-Town Semiconductor Technologies, a state-backed chip equipment manufacturer, has filed a lawsuit against U.S. semiconductor equipment supplier Applied Materials, accusing it of illegally acquiring and using proprietary technology.
In a filing to the Shanghai Stock Exchange on Wednesday, Beijing E-Town claimed that Applied Materials misappropriated trade secrets related to plasma sources and wafer surface treatment technologies—core components in semiconductor manufacturing.
The Chinese firm is seeking 99.99 million yuan ($13.94 million) in compensation.
Patent Dispute at the Core
According to the filing, Applied Materials allegedly disclosed these technical secrets by filing a patent in China and claiming the application rights. The patent, Beijing E-Town argues, contains confidential know-how jointly owned by Beijing E-Town and its subsidiary, Mattson Technology.
The alleged infringement stems from Applied Materials hiring two former Mattson employees, later listed as the principal inventors on the disputed Chinese patent.
Applied Materials has not yet commented on the case.
Legal History Between the Companies
The dispute is the latest development in a multi-year legal battle between the two companies.
- 2016: Beijing E-Town acquired Mattson Technology, a California-based designer of semiconductor wafer processing equipment.
- 2022: Applied Materials sued Mattson, accusing it of poaching former employees to gain access to its trade secrets.
- 2023: Mattson countersued, making similar allegations against Applied Materials.
In the latest case, Beijing E-Town alleges that Applied Materials’ actions violated China’s Anti-Unfair Competition Law and constituted trade secrets infringement.
Case Accepted, Hearing Pending
The Beijing Intellectual Property Court has formally accepted the civil case, but no hearing date has been set.
The lawsuit comes amid heightened tensions in the global semiconductor sector, where intellectual property disputes are increasingly intertwined with U.S.-China technology rivalry.