Update: TSMC, SMIC settle bitter suit

SAN JOSE, Calif. -- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has reached an out-of-court settlement with China's Semiconductor Manufacturing International Corp. (SMIC).

Under the terms of the settlement, SMIC (Shanghai) will pay TSMC (Hsinchu) $200 million plus an undisclosed amount of SMIC stock and warrants, according to Jeffrey Chanin, a partner at the law firm Keker & Van Nest LLP, which represents TSMC. The court will maintain jurisdiction to enforce the verdict, Chanin said. All other terms of the settlement are confidential, he said.

As reported, TSMC recently won a jury verdict over China's SMIC (SMIC) in a long-running and bitter trade secrets dispute between the two foundries, according to an attorney involved in the case.

The California Superior Court jury ruled on Tuesday (Nov. 3) that SMIC has been misappropriating TSMC trade secrets since January 2005, after the firms reached an agreement to settle allegations of corporate espionage and intellectual-property infringement, according to the attorney.

The TSMC-SMIC trial was being broadcast over the Internet by Courtroom View Network. That site can be seen here.