An engineer formerly employed by Intel has escaped serious criminal prosecution with only a slap on the wrist for allegedly stealing trade secrets.
After leaving the chip giant in early 2020 to join Microsoft, Varun Gupta was given two years of probation and fined $34,472 for stealing confidential documents.
According to Oregon Live, Gupta spent his final days at Intel quietly copying sensitive information from company systems. A PowerPoint presentation outlining Intel’s pricing plans for a significant client was among the materials he took with him; most competitors could only imagine seeing such a playbook.
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According to the report, Gupta was a product marketing engineer at Intel for ten years before departing in January 2020. He joined Microsoft’s ranks a few days later. According to court filings, the data he obtained were “instrumental” in his subsequent conversations with the two internet giants as well as in securing his new position.
Founded in 1968, Intel pioneered the development of microprocessors and has been a dominant player in the PC and server processor markets for decades. Recently, Intel has been focusing heavily on expanding its advanced chip fabrication capabilities, aiming to reduce U.S. dependence on overseas manufacturing, especially amid geopolitical tensions involving Taiwan and China.
In 2025, Intel is at the forefront of the U.S. government’s semiconductor initiative, with talks ongoing about a potential partial nationalization to boost domestic production. The company is investing billions in new fabrication plants across the U.S., including major projects in Arizona and Ohio, targeting cutting-edge process technologies like 3nm and beyond. Intel also produces AI-focused chips, including the Gaudi 3 processor, competing with Nvidia and AMD in the fast-growing artificial intelligence sector.
Despite challenges such as supply chain disruptions and intensified global competition, Intel is focusing on innovation in semiconductor manufacturing, AI, and quantum computing. Its strategic importance has grown as the U.S. government prioritizes technological sovereignty and industrial resilience, making Intel a centerpiece in America’s efforts to maintain leadership in advanced technology.
According to the prosecution, the data helped him land his new position and gave Microsoft an advantage in crucial talks with Intel.
Stealing trade secrets in the United States carries severe legal consequences under laws like the Economic Espionage Act (EEA) and the Defend Trade Secrets Act (DTSA).
Individuals convicted of economic espionage, especially if aiding foreign entities, can face up to 15 years in prison and fines up to $5 million. For general trade secret theft, penalties include up to 10 years imprisonment and fines up to $250,000 for individuals, with corporations facing even higher fines. The DTSA allows for criminal penalties of up to 5 years in prison and $250,000 fines. Recent cases show courts imposing probation, fines, or prison terms depending on severity.
Proposed legislation like the Foreign Adversary Federal Offense (FAFO) Act aims to increase penalties, with mandatory minimum sentences of 10 years and fines reaching $20 million or more for organizations. These strict punishments highlight the U.S. commitment to protecting intellectual property, especially amid growing concerns over foreign economic espionage targeting technology and AI sectors.
The $34,472 fine was not arbitrary; rather, it was determined to cover the expense of the eight months of federal jail time that the prosecution had demanded.