TSMC Files Complaint Against SMIC

By Suzanne Deffree -- Electronic News, 8/20/2004

Taiwan Semiconductor Manufacturing Co. this week filed a patent infringement complaint against its smaller rival Semiconductor Manufacturing International Co. (SMIC) with the U.S. International Trade Commission, Electronic News has confirmed.

This marks the second action against the China foundry by TSMC since December 2003, when TSMC first filed a suit. Since then, SMIC raised $1.8 billion in its March IPO and was named a top foundry by IC Insights just 10 days ago.

Both filings allege patent infringement, as well as stolen trade secrets.

In this week's statement, TSMC said it had evidence to show SMIC had infringed upon three patents -- in addition to the five named in its December claim -- and asked the United States to ban related SMIC products.

"TSMC and its subsidiaries, TSMC North America and Wafer Tech, filed a compliant with the ITC seeking to initiate an investigation against SMIC, SMIC Shanghai and SMIC Americas," a TSMC spokesman said. "The complaint is seeking an order excluding the unlicensed SMIC manufactured products from importation into the United States, number one. And number two, from stopping SMIC from offering for sale or selling those products in the U.S."

SMIC could not be reached for comment.