Core Viewpoint - The domestic semiconductor equipment leader, Yitang Co., announced it will sue Applied Materials, Inc. for stealing company secrets related to plasma sources and wafer surface treatment technology [2] Group 1: Legal Action - Yitang Co. claims that Applied Materials illegally obtained and used its core technology secrets and disclosed them in China through patent applications, violating the Anti-Unfair Competition Law of the People's Republic of China [2] - The lawsuit requests the court to order the defendant to cease the infringing activities, confirm the ownership of the disputed patent application rights, and compensate for economic losses and reasonable expenses totaling 99.99 million yuan [6] Group 2: Company Background - Yitang Co. focuses on the research, development, production, and sales of semiconductor manufacturing equipment, with a notable technology accumulation in high-concentration, stable, and uniform plasma wafer surface treatment technology [6] - Applied Materials, Inc. is a globally recognized semiconductor equipment supplier, covering various equipment and related services required for semiconductor manufacturing, holding a significant position in the global semiconductor equipment market [6] Group 3: Employee Involvement - The dispute involves two employees previously employed by Yitang Co.'s wholly-owned subsidiary, MTI, who signed confidentiality agreements, and are named as the main inventors in the patent application submitted by Applied Materials [6]

Core Viewpoint - The lawsuit initiated by Yitang Co., a leading domestic semiconductor equipment manufacturer, against American giant Applied Materials (AMAT) for 99.99 million yuan is seen as a significant event reflecting the awakening of technological sovereignty awareness among Chinese chip companies [2][8]. Group 1: Lawsuit Details - The lawsuit focuses on allegations that Applied Materials illegally obtained Yitang's plasma wafer surface treatment technology secrets by hiring former employees of its subsidiary, Mattson, who had signed confidentiality agreements [2]. - The compensation amount of 99.99 million yuan, just one yuan short of one hundred million, has sparked widespread discussion and adds a dramatic element to the case [2][7]. - The core accusation involves a critical process in wafer processing that generates high-concentration and stable plasma, which is essential for chip yield and production consistency, particularly for 12-inch wafers [2]. Group 2: Industry Context - This lawsuit is not an isolated incident; Applied Materials previously sued Mattson for allegedly poaching 17 senior engineers and attempting to steal confidential information [3]. - The semiconductor industry has a history of intellectual property disputes, with notable cases including TSMC's accusations against SMIC in 2009, which resulted in significant financial penalties [5]. Group 3: Company Performance - Despite being established only nine years ago, Yitang Co. has achieved a global market share of 34.6% in dry stripping equipment and 13.05% in rapid thermal processing equipment, ranking second worldwide [5]. - In the first three quarters of 2024, Yitang reported a net profit of 420 million yuan, a year-on-year increase of 102.29%, with domestic customer revenue share rising from 38.6% in 2021 to 68.1% in the first half of 2024 [5]. Group 4: Strategic Implications - The lawsuit is interpreted by some industry experts as a strategic move to demonstrate that Chinese companies are ready to challenge American giants, signaling a shift towards a more localized market focus [5][8]. - Legal experts suggest that while employee mobility is common, taking confidential documents could constitute a violation, which may strengthen Yitang's case if evidence is presented [5][7].