Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Taiwan Chip Foundry Alleges Corporate Espionage
The Associated Press ^ | Mar 23, 2004 | Matthew Fordahl

Posted on 03/23/2004 5:11:37 PM PST by BenLurkin

SAN JOSE, Calif. (AP) - The world's largest contract chip maker claims a China-based rival stole its trade secrets by hiring away employees and urging them to bring "presents" of proprietary information when coming to work at their new jobs, according to court documents. Taiwan Semiconductor Manufacturing Co., which handles chip-making for firms that don't have their own factories, claims Semiconductor Manufacturing International Corp. engaged in an "ongoing scheme of industrial espionage and unfair competition."

The lawsuit, originally filed in San Francisco federal court in December, alleges SMIC improperly obtained trade secrets and infringed U.S. patents. On Monday, it disclosed new evidence in response to SMIC's efforts to have the lawsuit dismissed.

Taiwan-based TSMC claims as much as 90 percent of one of its process flows - the sequence of steps to fabricate chips - had been copied by SMIC. This week's filing also said SMIC's use of stolen secrets was verified through a forensic examination of its chips.

"As a public company, we have an obligation to protect our patents and trade secrets to maintain shareholder value," said Chuck Byers, director of brand management at TSMC.

SMIC, which was incorporated in the Cayman Islands but headquartered in Shanghai, was founded in 2000 and has quickly grown to have one of China's most advanced semiconductor factories.

Catherine Zhao, a China-based SMIC spokeswoman, was not available to answer questions after hours. Previously, the company called the claims meritless.

"We want to emphasize that SMIC has strict company policy about intellectual property protection and always respects intellectual property rights of any third party," SMIC said in a statement released after the initial lawsuit was filed Dec. 18.

---


TOPICS: War on Terror
KEYWORDS: china; corporateespionage; trade

1 posted on 03/23/2004 5:11:38 PM PST by BenLurkin
[ Post Reply | Private Reply | View Replies]

To: BenLurkin
"I'm shocked -- shocked -- to find gambling is going on in here!"

"Your winnings, sir."

2 posted on 03/23/2004 5:22:47 PM PST by Bogey78O (I voted for this tagline... before I voted against it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin
I'm waiting to hear about a chip's design being stolen by the Chinese and then sold off.
3 posted on 03/23/2004 5:42:56 PM PST by lelio
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson