Beijing E-Town Semiconductor Technologies said it has filed a lawsuit against Applied Materials Inc. in the Beijing Intellectual Property Court, accusing the U.S. chip-equipment giant of illegally acquiring and using its proprietary technology. The Chinese firm, which is backed by the municipal government and listed in Shanghai, alleges Applied Materials misappropriated trade secrets related to plasma sources and wafer-surface treatment, then sought patent protection for the disputed innovations in China. E-Town claims the infringements followed Applied Materials’ recruitment of two former E-Town employees. The Chinese company is seeking injunctive relief and unspecified damages. Applied Materials has not responded to requests for comment. The case adds a fresh point of friction to the intensifying U.S.–China technology competition, coming just four months after Washington’s 145 % tariff on Chinese goods took effect and amid ongoing restrictions on advanced semiconductor exports. The dispute also underscores the growing strategic importance of chip-manufacturing know-how as both countries push to secure domestic supply chains.