A California Superior Court denied Taiwan Semiconductor Manufacturing Company (TSMC) its petition for an anti-suit injunction motion against Semiconductor Manufacturing International Corporation (SMIC) that would enjoin SMIC from proceeding with its lawsuit against TSMC in the Beijing High Court.

The California court stated that without exceptional circumstances, the court could not enjoin a party from prosecuting another action in a different state or country. The court paper also indicated that both TSMC and SMIC did not agree that California would be the exclusive jurisdiction on any file dispute settlement.

Other circumstances that were taken into consideration were whether SMIC was seeking to use the Beijing action to enjoin the California court, whether the Beijing court would provide due process of law and whether the Beijing court might apply California law, according to the court paper. On balance, the judge determined that there were no exceptional circumstances to justify TSMC's motion.

SMIC filed a complaint in a Beijing court last November, seeking damages for what it alleges to be TSMC's breach of contract and breach of implied covenant of good faith and fair dealing.

Officials from TSMC said they maintain a positive outlook concerning the court's decision, acknowledging that the decision did actually clarify the relationship between both courts over the lawsuit. SMIC did not comment further on the court's ruling but confirmed knowing the news.

Industry watchers commented that the California court has passed a message of respect to the Beijing court about the case, and that the expectations are that the Beijing court will handle the case on its merits, rather than on any nationalistic feelings.

By: DocMemory
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