Chinese Chip Maker Sues Taiwanese Rival
Posted on: Wednesday, 13 September 2006, 12:00 CDT
SHANGHAI, China - A Chinese chip maker has filed a complaint against a rival in Taiwan alleging breach of contract, escalating an already rancorous dispute between the two.
Shanghai-based Semiconductor Manufacturing International Corp. said Wednesday it is seeking unspecified damages from Taiwan Semiconductor Manufacturing Co. The counter-complaint follows last month's lawsuit the Taiwanese company filed in a California court charging the Shanghai company with breaking a 2005 settlement of a dispute over patents and alleged theft of trade secrets.
"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," the Chinese company said in a statement.
The Taiwan maker's chips are mainly used in computers, communications devices and consumer electronics, with Philips Electronics Ltd. and Motorola Inc. among its clients.
"Our legal action has been aimed at protecting our intellectual and shareholder value," TSMC spokesman J.H. Tzeng said, declining further comment on the new complaint.
SMIC is China's largest chip foundry by capacity. It operates semiconductor manufacturing facilities in Shanghai, Tianjin and Beijing.
Source: Associated Press/AP Online
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