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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Beijing E-Town Semiconductor is suing Applied Materials Inc. for 99.99 million yuan ($13.9 million), alleging theft of trade secrets related to plasma sources and wafer treatment.
E-Town Semiconductor, which recently raised 2.5 billion yuan in a STAR Market IPO, was the world’s No.2 supplier of dry photoresist stripping and rapid thermal processing equipment in 2023.
Applied Materials dominated rapid thermal processing, holding nearly 70% market share in 2023, versus just over 13% for E-Town.

AI generated, for reference only

Who’s Who

Beijing E-Town Semiconductor Technology Co. Ltd.: Beijing E-Town Semiconductor Technology Co. Ltd. (北京亦庄国际半导体有限公司) is a Chinese chipmaking-equipment manufacturer founded in 2015. They produce dry photoresist stripping equipment, rapid thermal processing equipment, and dry etching equipment. In 2023, they were the world's second-largest supplier of dry photoresist stripping equipment and rapid thermal processing equipment. They are suing Applied Materials Inc. for trade secret theft and recently completed an IPO, raising 2.5 billion yuan.

Applied Materials Inc.: 联合材料公司 is being sued by Beijing E-Town Semiconductor Technology Co. Ltd. (E-Town Semiconductor) for allegedly stealing trade secrets related to plasma sources and wafer surface treatment. E-Town Semiconductor claims Applied Materials hired former employees of its subsidiary, Mattson Technology Inc., and used their knowledge in patent applications. Applied Materials is a major rival of E-Town Semiconductor, especially dominating the rapid thermal processing equipment market with nearly 70% share in 2023.

Mattson Technology Inc.: Mattson Technology Inc. is a U.S. wafer processing equipment manufacturer. It was acquired by Beijing E-Town Semiconductor Technology Co. Ltd. in 2016. Mattson Technology Inc. is relevant to a lawsuit where E-Town Semiconductor alleges that Applied Materials Inc. stole trade secrets, claiming Applied Materials hired former Mattson employees who then used shared technical secrets in a patent application.

Tokyo Electron Ltd.: Tokyo Electron Ltd. is a Japanese company and a major rival to Beijing E-Town Semiconductor Technology Co. Ltd. in the chipmaking equipment market. The company is a dominant player 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 Beijing E-Town Semiconductor Technology Co. Ltd. in the chipmaking equipment market. In 2023, PSK Holdings was the market leader in dry photoresist stripping equipment, holding a 40.1% market share, ahead of E-Town Semiconductor.

Nauru Technology Group Co. Ltd.: Nauru Technology Group Co. Ltd. (北方华创科技集团股份有限公司) is a Chinese chipmaking equipment company. It is mentioned as a major rival to Beijing E-Town Semiconductor Technology Co. Ltd., alongside international competitors like Applied Materials Inc., Tokyo Electron Ltd., and PSK Holdings Inc.

Lam Research Corp.: Lam Research Corp. is an American company. It was a dominant foreign company in the global market for dry etching equipment in 2023, according to Gartner data.

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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