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SMIC countersues TSMC

Posted: 15 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:SMIC? TSMC? countersuit? patent suit? Mark LaPedus?

Chinese silicon foundry provider Semiconductor Manufacturing International Corp. (SMIC) on Sept. 12 said it has filed a counterclaim against rival Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).

Last month, TSMC once again filed a patent and trade-secret suit against SMIC. The suit alleges "breach of an agreement" over a settlement in a patent suit filed back in 2005. SMIC denied the allegations and said in its counterclaim that it is seeking damages for TSMC's "breach of contract and breach of implied covenant of good faith and fair dealing."

The company said its counterclaim "describes how TSMC, rather than compete in the marketplace, has undertaken a concerted effort since the previous lawsuits to discredit SMIC by making unfair and misleading accusations."

SMIC also claimed it complied with the settlement agreement. "TSMC did not voice any complaint for a period of over 17 months, until July 2006, after SMIC succeeded in meeting a number of major business and technical milestones during Q2 2006," SMIC said in a statement.

"TSMC used the lawsuit and subsequent campaign to repeat its previous campaign to disrupt SMIC's business and valued relationships with its customers," it added.

In the filing, SMIC said it "wants the court to dismiss TSMC's claims and grant judgment in favor of SMIC. SMIC welcomes fair competition and participation by other companies in the development of mainland China semiconductor industry, and urges TSMC to act fairly and reasonably."

- Mark LaPedus
EE Times

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