TSMC Applies to Take SMIC Stake
ChinaByte, 3/29/10
Foreign media have reported that Taiwanese semiconductor maker TSMC (2330.TW) has submitted its application to take a 10% stake in Chinese semiconductor manufacturer Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI, 0981.HK) to Taiwanese authorities. TSMC recently won the stake as part of the settlement of a trade secret lawsuit brought before U.S. courts.
TSMC sued SMIC for allegedly stealing 65 trade secrets. The two companies reached an international settlement agreement at the end of last year, the terms of which state that in addition to USD 200 mln in cash, SMIC will transfer new shares equaling an 8% stake in SMIC to TSMC, and TSMC will have a three-year option to purchase another 2% stake at HKD 1.3 per share, which would make TSMC SMIC's largest shareholder.
Keywords: 2330.TW M&A hardware semiconductor SMI SMIC TSMC 0981.HK law litigation
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