TSMC Obtains Termination of ITC Investigation into 37nm and Smaller Products

Hsinchu, Taiwan, R.O.C. – November 16, 2010 - TSMC (TWSE:2330, NYSE:TSM) announced today that it was able to secure a favorable resolution to an International Trade Commission investigation for alleged patent infringement by its 28 nm process technology. The parties have filed a joint motion to terminate the ITC investigation titled In the Matter of Certain Semiconductor Products Made by Advanced Lithography Techniques and Products Containing Same, 337-TA-729, brought by STC.UNM, the licensing arm of the University of New Mexico.

The investigation alleged TSMC’s semiconductor process with critical dimensions of 37 nm or below of infringing U.S. Patent No. 6,042,998 (“’998 patent”). TSMC responded by denying the infringement allegations.

TSMC’s general counsel, Dr. Richard Thurston, remarked “While TSMC regrets that a case based upon an invalid and unenforceable patent such as STC’s made its way into the courts, TSMC is, however, pleased with the outcome of this case.”