BUSINESS

Applied Materials Sued by Chinese Rival for Stealing Trade Secrets

Published: Aug. 15, 2025 6:46 p.m. GMT+8

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E-Town Semiconductor accused Applied Materials of illegally obtaining and using its core technical secrets. Photo: AI generated

Beijing E-Town Semiconductor Technology Co. Ltd. is demanding 99.99 million yuan ($13.9 million) in damages from a U.S. chipmaking-equipment supplier it has accused of stealing its trade secrets.

The Chinese chipmaking-equipment maker is suing Applied Materials Inc. in Beijing Intellectual Property Court. Its lawsuit accuses the California-based firm of “illegally obtaining and using its core technical secrets related to plasma sources and wafer surface treatment,” according to an exchange filing.

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E-Town Semiconductor sued U.S.-based Applied Materials in Beijing, seeking $13.9 million for alleged theft of trade secrets related to plasma sources and wafer surface treatment.
The lawsuit follows E-Town’s IPO, where it raised 2.5 billion yuan; E-Town holds a 34.6% share of the global dry photoresist stripping equipment market (second to PSK’s 40.1%).
In rapid thermal processing equipment, E-Town’s global share is just over 13%, far behind Applied Materials’ nearly 70%.

AI generated, for reference only

Who’s Who

Beijing E-Town Semiconductor Technology Co. Ltd.: Beijing E-Town Semiconductor Technology Co. Ltd. (E-Town Semiconductor) is a Chinese chipmaking-equipment company founded in 2015. They produce gear for chip fabrication, including dry photoresist stripping, rapid thermal processing, and dry etching equipment. E-Town Semiconductor recently sued Applied Materials Inc. for trade secret theft and completed an IPO on the Shanghai Stock Exchange's STAR Market.

Applied Materials Inc.: Applied Materials Inc. is a US-based chipmaking-equipment supplier. They are being sued by Chinese rival E-Town Semiconductor for alleged trade secret theft, specifically related to plasma sources and wafer surface treatment. Applied Materials is a major competitor in the semiconductor equipment market, leading in rapid thermal processing equipment with nearly 70% market share in 2023.

Mattson Technology Inc.: Mattson Technology Inc. is a U.S. wafer processing equipment manufacturer acquired by E-Town Semiconductor in 2016. E-Town Semiconductor alleges that Applied Materials hired two former Mattson employees who held confidential technical secrets, which were then used in a patent application.

Tokyo Electron Ltd.: The article mentions Tokyo Electron Ltd. (TEL) as a major rival to Chinese chipmaking-equipment company E-Town Semiconductor. In 2023, TEL was a dominant foreign company in the global market for dry etching equipment, alongside Lam Research Corp. and Applied Materials.

PSK Holdings Inc.: PSK Holdings Inc. is a South Korean rival to Chinese chipmaking-equipment company E-Town Semiconductor and U.S. company Applied Materials. In 2023, PSK Holdings was the market leader in dry photoresist stripping equipment, holding a 40.1% market share.

Nauru Technology Group Co. Ltd.: Nauru Technology Group Co. Ltd. is a Chinese company that manufactures chipmaking equipment. It is identified as a rival to E-Town Semiconductor Technology Co. Ltd. and Applied Materials Inc. in the chipmaking equipment market.

Lam Research Corp.: Lam Research Corp. is a major foreign company dominating the global market for dry etching equipment. In 2023, alongside Tokyo Electron and Applied Materials, it held a significant share of this market, overshadowing E-Town Semiconductor's 0.21% share.

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What Happened When

2015：: E-Town Semiconductor was founded.

2016：: E-Town Semiconductor acquired Mattson Technology, a U.S. wafer processing equipment manufacturer.

2023：: E-Town Semiconductor became the world's second-largest supplier of dry photoresist stripping equipment with a 34.6% market share, close behind PSK Holdings (40.1%), and the world's No. 2 provider of rapid thermal processing equipment with just over 13% market share, while Applied Materials held nearly 70% of the same market.

2023：: E-Town Semiconductor held a 0.21% market share of the global market for dry etching equipment, which was dominated by Lam Research, Tokyo Electron, and Applied Materials.

July 2025：: E-Town Semiconductor completed an IPO on the STAR Market of the Shanghai Stock Exchange, raising 2.5 billion yuan.

August 14, 2025：: E-Town Semiconductor filed a lawsuit at the Beijing Intellectual Property Court against Applied Materials for allegedly stealing trade secrets, demanding 99.99 million yuan ($13.9 million) in damages.

AI generated, for reference only