A Chinese contract chip maker hopes to bring a swift end
to allegations of trade secret misappropriation by arguing that US
courts have no jurisdiction over several charges in a lawsuit
brought against a rival.
Next month, Chinese contract chip maker Semiconductor
Manufacturing International (SMIC) will ask a US judge to dismiss
the allegations of trade-secret misappropriation contained in the
lawsuit.
"There is simply no basis to invoke this court's jurisdiction to
hear a dispute between two foreign corporations over events that
occurred in Taiwan and China and which involve no issues of US
federal law," the SMIC filing stated.
Rival Taiwan Semiconductor Manufacturing had filed the lawsuit
in a US court in December, alleging that SMIC infringed on five of
its patents and misappropriated trade secrets related to the
manufacture of semiconductors.
SMIC's filing argued that TSMC's amended complaint and
allegations of trade-secret misappropriation are "filled with
inaccuracies and distortions that are clearly designed to convey a
false impression of wrongdoing and to malign the character and
integrity of SMIC and its personnel but are unrelated to the patent
infringement claims which form the sole basis for federal
jurisdiction".
The filing did not address the five allegations of patent
infringement brought against SMIC by TSMC. SMIC will address those
charges within 10 days of the court's ruling on its motion for
dismissal of the trade-secret misappropriation charges.
TSMC alleged that SMIC recruited more than 140 employees from
TSMC and TSMC-affiliated companies to gain access to TSMC's
technology and trade secrets. The complaint also alleged that a
former TSMC quality control manager was directed to obtain TSMC
trade secrets for SMIC while still employed by TSMC.
The stakes are high for SMIC, which intends to issue up to $714m
of shares in an initial public offering on the New York Stock
Exchange. That IPO is slated to take place on 17 March and will be
followed by a second listing on the Hong Kong Stock Exchange.
Sumner Lemon writes for IDG News
Service