Taiwan Semiconductor Manufacturing Company (TSMC) is suing China mainland-based Semiconductor Manufacturing International (SMIC) for stealing patents and industrial secrets. The U.S. District Court of Northern California will be the venue for the case.

"We feel that we have no other choice than to proceed through the courts in order to protect our technology," Dr. Dick Thurston, general counsel for TSMC, said in a statement released with the lawsuit announcement.

TSMC claims SMIC hired dozens of TSMC employees and asked some to provide confidential trade information. Both companies produce chips, and TSMC has believed for a couple of years that SMIC was infringing on TSMC's patents. However it was only recently that they could confirm this.

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