Processors Toolkit

Copying accusations fly in Chinese chip tussle

Aloysius Choong CNETAsia

Published: 25 Mar 2004 10:15 GMT

Taiwan Semiconductor Manufacturing Company (TSMC), the world's top contract chip manufacturer, has disclosed new evidence as part of its suit against China's Semiconductor Manufacturing International Corp (SMIC) for alleged corporate espionage.

In its latest filing, TSMC attached statements of former SMIC engineers, including a claim that 90 percent of one of its manufacturing processes was copied from TSMC. According to the Taiwanese company, forensic examination of an SMIC chip revealed features "strikingly similar" to TSMC's.

In its original complaint filed with a US district court in California last December, TSMC had asked for an injunction as well as an undisclosed amount in monetary damages against its Shanghai-based rival. It claimed the latter had hired away TSMC engineers and subsequently asked them to reveal proprietary information.

"We feel that we have no other choice than to proceed through the courts in order to protect our technology. It is our obligation to protect our patents and trade secrets to maintain shareholder value," said Dick Thurston, vice president and general counsel for TSMC, in the initial statement.

SMIC said earlier this month it was reviewing TSMC's claims. The world's fifth largest foundry also asked for allegations to be dismissed on the grounds that US courts do not have jurisdiction over a dispute between "two foreign corporations over events that occurred in Taiwan and China and which involved no issues of US federal law".

A company spokesperson could not be reached for comment about the latest charges.