TSMC CoWoS Supplier GPTC Denies China Technology Leak While Filing Lawsuit Against Former General Manager

Grand Process Technology Corporation, better known as GPTC, has denied reports claiming that key technology tied to TSMC’s advanced packaging supply chain was leaked to China. At the same time, the company confirmed that it has filed a lawsuit against its former General Manager Huang Fu Yuan over suspected trade secret infringement, with the case now under judicial investigation.

GPTC is an important supplier in Taiwan’s semiconductor equipment ecosystem and is linked to advanced packaging solutions such as CoWoS, one of the key technologies behind today’s AI chip boom. CoWoS capacity has become increasingly critical as NVIDIA, AMD, Broadcom, and other AI chip designers depend on advanced packaging to connect compute dies, HBM stacks, and other components into high performance accelerator packages.

According to reporting from LTN, GPTC issued a clarification after media reports claimed that key technologies may have flowed to China. The company stated that it has not found evidence that critical technical secrets related to equipment or machinery have been transferred to China. Dan Nystedt also highlighted the clarification through X, noting GPTC’s denial that critical CoWoS related technology had leaked to China.

TSMC advanced packaging (CoWoS) equipment supplier GPTC (Grand Process) denied that any critical technology had been leaked to China, yet confirmed it had filed a lawsuit against its former general manager for suspected trade secret infringement and GPTC is “fully cooperating…

— Dan Nystedt (@dnystedt) April 25, 2026

The company’s official clarification, published through Taiwan’s Market Observation Post System and summarized by BigGo Finance, states that GPTC places strong importance on intellectual property, trade secrets, and customer information. GPTC also said it has established strict internal management mechanisms and that all employees must comply with company regulations.

However, the situation remains sensitive because GPTC also confirmed that it has taken legal action involving the former executive mentioned in the reports. The lawsuit concerns suspected trade secret infringement, but because the case is currently under judicial investigation, GPTC said it cannot disclose further details under Taiwan’s investigation confidentiality rules.

"The company has not yet discovered any instances of critical technical secrets, such as those related to equipment, flowing to China. The media reports are purely unfounded speculations, and are hereby clarified.

-GPTC"

GPTC also said it will fully cooperate with prosecutors and investigators to protect the company’s rights and interests. The company added that because the reports have damaged its reputation, it issued the clarification in accordance with relevant regulations.

The distinction is important. GPTC is denying that key technology has been found to have flowed to China, but it is not denying that a legal case exists involving suspected infringement of trade secrets. That means the confirmed fact is the lawsuit and investigation, while the claim that key technology was transferred to China remains unproven and disputed by the company.

This is why the case is attracting attention across the semiconductor industry. Advanced packaging has become one of the most strategically important parts of chip manufacturing. In the AI era, transistor scaling alone is no longer enough. Companies need high density packaging, HBM integration, interposers, substrate capacity, thermal management, and precision equipment to build competitive AI accelerators. TSMC’s CoWoS ecosystem is currently one of the most valuable bottlenecks in the global semiconductor supply chain.

Any claim involving potential leakage of CoWoS related equipment knowledge is therefore highly sensitive. Even if no confirmed transfer to China has been found, the fact that a key supplier has filed a trade secret related lawsuit against a former senior executive naturally raises concern. Semiconductor equipment know how can be just as important as chip design data, especially when it involves production methods, process recipes, tooling drawings, and advanced packaging machinery.

The broader geopolitical context makes the story even more significant. China has faced extensive export restrictions from the United States and its allies, especially around advanced chipmaking tools, AI accelerators, and leading edge manufacturing equipment. Chinese semiconductor firms have been working to strengthen domestic capabilities, while Taiwan’s semiconductor ecosystem remains a key source of experience, engineering talent, and manufacturing knowledge.

Because of that, talent movement, trade secret protection, and employee poaching have become major issues across the semiconductor industry. Companies such as TSMC and its suppliers operate in an environment where intellectual property protection is not only a corporate concern, but also a national industrial security issue.

This is not the first time Taiwan’s semiconductor industry has faced concerns around sensitive information. Previous cases involving trade secret investigations have already shown how closely governments and companies monitor the movement of technical expertise. In this environment, even an unconfirmed report can trigger major market concern, especially when the company involved is part of TSMC’s advanced packaging supply chain.

For investors and industry watchers, the key point is caution. GPTC has clearly denied that it has found evidence of critical technology flowing to China. The company has also stated that the media reports are speculative. At the same time, the lawsuit against Huang Fu Yuan confirms that there is an active legal matter involving suspected trade secret infringement. Until prosecutors or the company release more details, it would be inaccurate to treat the China leak claim as proven.

From a supply chain perspective, the immediate question is whether GPTC’s operations or customer relationships could be affected. So far, there is no confirmed indication that TSMC’s CoWoS supply has been disrupted by this case. Digitimes separately reported that GPTC remains part of the advanced packaging equipment supplier landscape, with CoWoS demand continuing to boom across Taiwan’s semiconductor ecosystem.

Still, the case highlights how vulnerable the advanced packaging supply chain has become to legal, geopolitical, and talent related risks. As AI chip demand continues rising, suppliers connected to CoWoS and similar technologies will remain under intense pressure. They are not only building equipment and capacity. They are also protecting some of the most valuable industrial knowledge in the semiconductor world.

For GPTC, the message is clear: the company wants to reassure the market that no confirmed leakage to China has been found, while also showing that it is taking trade secret protection seriously through legal action. For the wider semiconductor industry, the case is another reminder that advanced packaging has become a frontline technology in the global chip race.

Until the judicial investigation produces more public information, the most responsible conclusion is that GPTC has denied the alleged China technology leak, confirmed a lawsuit against its former General Manager, and pledged full cooperation with prosecutors.

Should advanced packaging suppliers face stricter oversight as CoWoS becomes one of the most important bottlenecks in the AI semiconductor supply chain?