Asian Chip Makers Settle Trade-Secrets, Patent Suit In $175M Deal

By Marius Meland (January 31, 2005, 12:00 AM EST) -- Semiconductor Manufacturing International, China's largest chip maker, has agreed to pay $175 million to settle a patent infringement and trade-secrets suit brought by rival Taiwan Semiconductor Manufacturing in U.S. and Taiwanese courts.

Under terms of the settlement agreement, SMIC will pay TSMC $175 million over six years. SMIC will pay $30 million each year for the first five years and $25 million in the sixth year. In addition, TSMC and SMIC have agreed to license their patent portfolios to each other through December 2010 under a cross-license agreement, they said.

As part of the settlement agreement, TSMC has agreed not to...

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