TSMC wants 10 percent of China's SMIC

Number one foundry TSMC is in consultation with Taiwanese regulatory authorities and readying itself to take over an eight percent chunk of mainland foundry SMIC.

SMIC (Semiconductor Manufacturing International Corp) settled a legal dispute in November after it admitted it had appropriated trade secrets from Taiwanese foundry TSMC, according to the Taipei Times.

As part of the settlement, SMIC paid $200 million to TSMC and agreed to issue new shares amounting to eight percent of the mainland fab’s business. But Taiwanese authorities have recently relaxed rules on relations with mainland China companies and could now take as much as 10 percent of SMIC.

The Taipei Times said it was likely that the Taiwanese Investment Commission and the Industrial Development Bureau would approve TSMC’s partial acquisition of SMIC.