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SMIC will vigorously defend against new claims from TSMC and advocates fair competition

25 Aug 2004


SHANGHAI  [2004-08-25]

(SHANGHAI, CHINA, AUGUST 25TH,2004)TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. (“TSMC”) HAS RECENTLY FILED A PROCEEDING AGAINST SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION (SMIC; NYSE: SMI AND HKSE: 981) WITH THE UNITED STATES INTERNATIONAL TRADE COMMISSION (THE “ITC”). IN THIS ITC PROCEEDING, TSMC HAS ALLEGED SUBSTANTIALLY THE SAME TRADE SECRET MISAPPROPRIATION CLAIMS WHICH ARE CURRENTLY PENDING BEFORE THE CALIFORNIA STATE COURT, AND PATENT INFRINGEMENT CLAIMS REGARDING THREE PATENTS WHICH ARE THE SUBJECT OF A NEW SUIT TSMC FILED CONCURRENTLY WITH THE ITC PROCEEDING, AGAINST THE COMPANY IN THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA.

AS WITH THE PREVIOUS CLAIMS IN TSMC'S OTHER LAWSUITS, SMIC IS IN THE PROCESS OF CONDUCTING AN INVESTIGATION OF THE NEW CLAIMS AND WILL ASSESS AND FORMULATE ITS STRONG DEFENSES TO THE NEW CLAIMS.

SMIC EMPHASIZES THAT IT RESPECTS THE INTELLECTUAL PROPERTY OF OTHERS. GIVEN SMIC’S REPUTABLE TECHNOLOGY PARTNERS AND CUSTOMERS, AND STRONG EXPERIENCED IN-HOUSE TECHNICAL TEAM, SMIC’S SUCCESS HAS BEEN ACCOMPLISHED WITHOUT THE NEED TO MISAPPROPRIATE ANY THIRD PARTY’S TRADE SECRETS.

SMIC WELCOMES ALL SEMICONDUCTOR COMPANIES INCLUDING THOSE FROM TAIWAN TO JOINTLY DEVELOP THE RAPIDLY GROWING CHINA SEMICONDUCTOR MARKET. ADVOCATING FAIR AND FRIENDLY COMPETITION, SMIC IS WILLING TO SHARE ITS CHINA EXPERIENCE.

ABOUT SMIC
SMIC IS ONE OF THE LEADING SEMICONDUCTOR FOUNDRIES IN THE WORLD. AS A FOUNDRY, SMIC PROVIDES INTEGRATED CIRCUIT (IC) MANUFACTURING AT 0.35-MICRON TO 0.13-MICRON TECHNOLOGIES. ESTABLISHED IN APRIL 2000, SMIC, A CAYMAN ISLANDS COMPANY, OPERATES THREE 8-INCH WAFER FABRICATION FACILITIES IN THE ZHANGJIANG HIGH-TECH PARK IN SHANGHAI, AND AN 8-INCH WAFER FABRICATION FACILITY IN TIANJIN, CHINA. IN ADDITION, SMIC IS CURRENTLY CONSTRUCTING 12-INCH WAFER FABRICATION FACILITIES IN BEIJING, CHINA. SMIC'S FAB 1 WAS NAMED ONE OF TWO "TOP FABS OF THE YEAR 2003" BY SEMICONDUCTOR INTERNATIONAL, A LEADING INDUSTRY PUBLICATION IN MAY 2003. IN ADDITION TO IC MANUFACTURING, SMIC PROVIDES CUSTOMERS WITH A FULL RANGE OF SERVICES, INCLUDING DESIGN SERVICES, MASK MANUFACTURING AND WAFER PROBE TEST. FOR MORE INFORMATION, PLEASE VISIT WWW.3dsentson.com

SMIC CONTACT:
SARINA HUANG
SMIC PUBLIC RELATIONS
SHANGHAI, CHINA
+86 21 5080 2000 X 10356
SARINA_HUANG@3dsentson.com
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