After reaching an out-of-court settlement in a lawsuit the company had filed against SMIC, TSMC will be receiving a whopping $290.2 Million. The case concerning theft of trade secrets, patent infringement and breach of contract was filed against Semiconductor Manufacturing International, currently China's largest chip maker, by Taiwan Semiconductor Manufacturing, which is the world's largest contract chip manufacturer, in December 2003.

As per the agreed terms of the settlement, SMIC would pay TSMC $200 Million in cash, upfront, in addition to stocks and warrants valued at $90.2 Million, which would entitle TSMC to hold a 10% stake in SMIC.

"SMIC believes this settlement is a win-win for the parties, resolving uncertainty for their employees, mutual customers, and other stakeholders", SMIC said.

The lawsuit first saw light in December of 2003, when TSMC dragged SIMC to court on charges of "patent infringement and trade secrets theft". Although that case was settled in 2005 with a payment valued at US$175 Million, the relationship between the two chip makers turned sour and TSMC ended up filing a fresh case in 2005.