Taiwan Semiconductor Manufacturing Company (TSMC) on March 29 announced it has formally filed an application with the Taiwan government to take up a stake in China-based Semiconductor Manufacturing International Corporation (SMIC). The Taiwan-based foundry is also mulling plans to apply for government permission to produce ICs on 0.13-micron in China.
TSMC is seeking approval to receive 1,789,493,218 Hong-Kong listed ordinary shares of SMIC. TSMC said it may submit a separate application if it decides to exercise its rights to purchase another 695,914,030 SMIC shares at HK$1.30 per share.
SMIC has agreed to grant TSMC a payment of US$200 million, an 8% stake and a warrant to subscribe to a further 2%, as part of a settlement for their trade secrets dispute reached in November 2009. Taiwan recently lifted a cross-strait investment ban, allowing its foundries to invest in their China counterparts.
TSMC also revealed a plan to migrate its 8-inch fab in Shanghai, China to the 0.13-micron node. The foundry said when relevant documents are ready, it will submit an application to Taiwan government authorities for the process migration at the China fab.
Article translated by Jessie Shen
