Taiwan Semiconductor Manufacturing Company (TSMC) said it has formally filed an application with the Taiwan government to take up a stake in China-based Semiconductor Manufacturing International Corporation (SMIC).

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.

By: DocMemory
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