chip2.jpgThe
war of words — and lawsuits — between China's and Taiwan's
semiconductor industries continues. This time its China's SMIC that is
suing TSMC in a Bejing court for alleged “unfair competition” and
“commercial defamation”.

By filing the case in Beijing, SMIC will give Chinese judges a big
voice in a politically sensitive dispute affecting two technology
champions from rival sides of the Taiwan Strait, argues the Financial Times.

The lawsuit also raises the interesting possibility that US and
Chinese courts could come to different conclusions as to who has hurt
whom.

SMIC and TSMC first clashed in the law courts over patent issues in
2004. After an uneasy truce, the dispute has flared up again this year
when TSMC sued SMIC in the US, alleging misappropriation of trade
secrets and breach of a previous settlement.

See this EngagingChina story for more.


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