TSMC reloads lawsuit vs. SMIC

August 28, 2006 – Taiwan Semiconductor Manufacturing Corp. (TSMC) has renewed its litigation against Chinese rival Semiconductor Manufacturing International Corp. (SMIC), citing breach of a settlement between the two firms signed a year ago.

The two firms had fought via lawsuits concerning patents and trade secrets, before the agreement in January 2005 by which SMIC would pay $175 million over six years, plus a cross-licensing deal through 2010, and dismissal of all legal actions.

In a statement, SMIC said it “has worked diligently to honor the agreement and has complied with its terms,” and the company is “very shocked by and deeply disappointed with the actions of TSMC, and believes their actions are brought in bad faith.”

In the original suit, filed in late 2003, TSMC alleged that SMIC hired dozens of former TSMC employees, some of whom took secret company information with them, including coded references to TSMC best practices.


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