China Economic Review
Charting China’s changing economic terrain · Since 1990

Foundry battle deepens

August 25, 2004

Taiwan Semiconductor Manufacturing Co (TSMC) has requested the US International Trade Commission investigate its claims that Shanghai-based Semiconductor Manufacturing International Corp (SMIC) infringed TSMC patents and committed other offenses, the South China Morning Post reported. SMIC said that it would investigate TSMC's latest complaints and �formulate strong defenses." TSMC maintains that SMIC poached key members of its staff with various stock offers and induced them �to steal company trade secrets,� besides infringing several of its patents, the Post said, adding that TSMC's complaints could be a ruse to block SMIC from the lucrative American market. If US authorities rule in TSMC's favor, SMIC chips could be barred from entering the US.

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