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TSMC: Firm Wins Suit Against SMIC On Patent, Trade Secrets Use

TAIPEI -(Dow Jones)- Taiwan Semiconductor Manufacturing Co. (TSM) won a lawsuit against China's Semiconductor Manufacturing International Corp. (SMI) on patents and trade secret infringement, TSMC spokesman J.H. Tzeng said Wednesday.

A court in California made the ruling Tuesday, Tzeng said. The chip maker will decide on what compensation to seek from SMIC later, he said.

TSMC filed the lawsuit in 2006 to seek compensation from SMIC for damages caused for breach of a 2005 settlement, and an injunction to prevent SMIC from using certain patents and trade secrets to compete unfairly against TSMC.

SMIC had agreed in 2005 to pay TSMC US$175 million over a six-year period. The two companies agreed to cross-license each other's patent portfolio through December 2010.

-By Jessie Ho, Dow Jones Newswires; 88622 502-2557; jessie.ho@dowjones.com

  (END) Dow Jones Newswires
  11-03-092020ET
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