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TSMC resumes trade secret feud with SMIC |
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Aug 28, 2006 at 10:01 AM |
 Updated: China's Semiconductor Manufacturing International Corp (SMIC) has been accused for a second time by Taiwan Semiconductor Manufacturing Co Ltd (TSMC) of using its trade secrets, after the Chinese foundry settled out of court in January 2005, agreeing to pay the Taiwanese foundry around $175 million in compensation, spread over six years.
According to a brief statement by TSMC, SMIC is apparently in breach of certain aspects of the 2005 settlement and has filed suit in a California court on August 25 TH, XFN-ASIA, a news service has reported. Neither company has commented further or provided more details concerning the legal move.
Update: SMIC has responded in a statement to the TSMC claims, insisting that it had ‘worked diligently to honour the agreement and has complied with its terms. SMIC is very shocked by and deeply disappointed with the actions of TSMC and believes their actions are brought in bad faith. Whilst SMIC will fight the lawsuit and defend and protect our interests, SMIC urges TSMC to act reasonably and honour the Settlement Agreement we reached.' SMIC also reiterated that the 2005 settlement agreement did allow TSMC to resume legal proceedings if SMIC was believed to be in breech of using TSMC's trade secrets.
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