Photo source : communications today
Beijing E-Town Semiconductor Technologies announced on Wednesday that it has filed a lawsuit against U.S.-based Applied Materials, Inc., accusing the company of illegally obtaining and using its core trade secrets related to plasma sources and wafer surface treatment technologies. The Chinese semiconductor equipment maker claims in its lawsuit filed at the Beijing Intellectual Property Court that Applied Materials improperly acquired these trade secrets and subsequently disclosed them by filing a patent application in China, seeking 99.99 million yuan in compensation for the alleged infringement.
The disputed technology involves the use of high-concentration, stable, and uniform plasma for wafer surface treatment, which Beijing E-Town describes as critical to its semiconductor equipment, including devices for dry photoresist removal, dry etching, and surface modification. The company asserts that it holds exclusive trade secrets in this field and that Applied Materials' actions have caused significant commercial harm.
The lawsuit centers on two former employees of Mattson Technology, Inc. (MTI), a wholly owned subsidiary of Beijing E-Town, who later joined Applied Materials. These individuals had access to sensitive technical information and had signed confidentiality agreements during their tenure at MTI. Evidence suggests that after moving to Applied Materials, they filed a patent application with the China National Intellectual Property Administration (CNIPA) that allegedly disclosed trade secrets jointly owned by Beijing E-Town and MTI.
Beijing E-Town alleges that Applied Materials violated China’s Anti-Unfair Competition Law by unlawfully acquiring and using its proprietary technology, then incorporating it into products sold to Chinese customers. The company is requesting that the court order Applied Materials to cease infringement, destroy confidential materials, and stop further disclosure of the trade secrets. In addition, Beijing E-Town seeks legal recognition of its ownership of the disputed patent rights and financial compensation totaling 99.99 million yuan, which includes triple punitive damages.
Founded in 2015, Beijing E-Town Semiconductor Technologies specializes in developing and manufacturing wafer processing equipment for integrated circuit production. It is one of the few Chinese companies capable of producing a wide range of semiconductor equipment and claims to be the only domestic firm with internationally leading technology in both plasma and wafer thermal processing. The company went public on the Shanghai Stock Exchange’s STAR Market in July 2025, with a market capitalization of approximately 67.623 billion yuan.
Applied Materials, established in 1967 and headquartered in California, is a global leader in semiconductor and display manufacturing equipment. The company holds more than 22,000 patents and was the first international semiconductor equipment manufacturer to enter the Chinese market. As of the latest data, its market value stands at $151.23 billion.
This legal dispute follows a similar case involving Yangtze Memory Technologies’ lawsuit against Micron Technology, marking the second instance of a Chinese semiconductor company taking legal action against a U.S. rival over alleged intellectual property theft. The outcome of this case could have significant implications for intellectual property protection in China’s semiconductor industry and may influence how similar disputes are handled in the future.
