By: Staff-Semiconductor International

TSMC alleges that SMIC violated a 2005 settlement between the two companies, allegedly using TSMC's trade secrets in SMIC's 130 nm and beyond products. TSMC claims that SMIC's alleged use of the trade secrets should result in termination of a TSMC patent license to SMIC, and also negates an agreement not to sue that was part of the 2005 settlement.

SMIC has denied the allegations of misappropriation, and has filed counter charges both in the state of California and in China's High Court in Beijing.

A civil trial is set to begin Wednesday in the Alameda County, Calif., Superior Court.

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