Intel has defended itself against accusations that its latest executive hire stole trade secrets, as TSMC sues the exec and Taiwanese prosecutors say they’ve begun a probe into the incident.

A new legal battle is taking shape in the semiconductor industry, with TSMC suing its former employee, Wei-Jen Lo, after he joined Intel following his retirement at the Taiwanese firm. Intel CEO Lip-Bu Tan argues that TSMC's claims of trade-secret theft are unwarranted and that Lo has the company's full support.

TSMC's concern centers on the possibility that former SVP Wei-Jen Lo could transfer sensitive technical knowledge to his new employer.

The company asserted, “There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade secrets and confidential information to Intel.” Intel CEO Lip-Bu Tan rejected the allegations Wednesday,

Wei-Jen Lo’s previous employer, TSMC, says he violated noncompete and confidentiality agreements when he joined rival Intel.

TSMC said it filed the lawsuit against Lo Wei-jen, a former senior vice president, on Tuesday at the Intellectual Property and Commercial Court in Taiwan. It said the legal action was based on a non-compete agreement that Lo had signed during his employment.

Chip stock Intel ($INTC) found itself in the middle of a bit of unexpected controversy as reports emerged suggesting that former Taiwan