Taiwan semiconductor firm wins legal battle with mainland rival

Taiwan Semiconductor Manufacturing Co (TSMC) had its accusations of stealing trade secrets against mainland rival Semiconductor Manufacturing International Corp (SMIC) upheld by a California court on Tuesday, the Wall Street Journal reported. The jury at Alameda County Superior Court must still rule on what damages SMIC might have to pay. An expert witness for TSMC earlier valued the damage caused at around US$1 billion. TSMC first filed suits against SMIC in 2003, accusing it of infringing patents and stealing technology concerning the manufacture of fabricating chips on silicon wafers. SMIC agreed in 2005 to a US$175 million settlement that allowed it to use TSMC patents. Later that same year, TSMC filed another suit accusing SMIC of violating the terms of the settlement. Jeffrey Chanin, an attorney at Keker & Van Nest representing TSMC, said it was “the biggest case of wholesale corporate espionage” he had ever seen.