US Chip-Gear Maker Applied Materials Sued in China for Alleged Trade Secret Theft

US chip-equipment supplier Applied Materials is being sued by Chinese rival Beijing E-Town Semiconductor Technology over alleged trade secret theft. E-Town alleges that Applied Materials illegally obtained and used its core technologies related to plasma source treatment for wafers. The Beijing firm is seeking damages of around $13.9 million and demanding that Applied Materials stop using its trade secrets and destroy related materials. The case marks an escalation in the technology war between the US and China.

US chip-equipment supplier Applied Materials Inc. (AMAT) is facing a lawsuit from Chinese rival Beijing E-Town Semiconductor Technology Co. Ltd. (688729.SS) over alleged trade secret theft. The Chinese company alleges that Applied Materials illegally obtained and used its core technologies related to plasma source treatment for wafers.

Beijing E-Town Semiconductor, backed by the Chinese government, filed the lawsuit with the Beijing Intellectual Property Court. The company seeks damages of approximately $13.9 million and demands that Applied Materials stop using its trade secrets and destroy related materials. The lawsuit marks an escalation in the ongoing technology war between the US and China.

According to the lawsuit, Applied Materials hired two former employees from Beijing E-Town's US subsidiary, Mattson. These employees were privy to Beijing E-Town's proprietary plasma technologies. Applied Materials then filed a patent application in China, crediting the duo as inventors. Beijing E-Town alleges that the patent application revealed confidential technical know-how co-owned by the two companies, violating China's Anti-Unfair Competition Law and infringing on trade secrets.

Beijing E-Town also accuses Applied Materials of marketing and selling the technologies involved in the case to Chinese customers. The company seeks compensation for damages caused by the alleged trade secret infringement.

The Beijing Intellectual Property Court has accepted the civil case, but no court hearing has been scheduled yet. Applied Materials has not responded to requests for comment.

This lawsuit comes amidst a broader context of geopolitical tensions between the US and China in the semiconductor industry. The semiconductor manufacturing equipment space is still dominated by the US, the Netherlands, and Japan. China's efforts to retaliate against US restrictions on high-tech exports have been ongoing, with this lawsuit being the latest development.

References:
[1] https://newsable.asianetnews.com/markets/applied-materials-hit-with-trade-secrets-infringement-lawsuit-by-beijing-backed-semiconductor-company-report-articleshow-kh42ilc
[2] https://www.reuters.com/legal/litigation/beijing-e-town-sues-us-firm-applied-materials-alleging-trade-secrets-leak-2025-08-13/
[3] https://www.bloomberg.com/news/articles/2025-08-13/us-chip-gear-maker-sued-in-china-over-alleged-trade-secret-theft