SiS and UMC were in litigation for little less than two years because UMC accused SiS of stealing some of their intellectual property. To be precise, the legal dispute was over SiS’ manufacturing technology that was reportedly copied from UMC’s and used for certain products from the Hsinchu-based chipset maker. In a preliminary determination on May 7, 2002, an Administrative Law Judge (ALJ) of the ITC (International Trade Commission) held that the UMC patents in question are invalid. In the final determination, the ITC has supported this view, with respect to all but one of the twenty-nine individual claims. The ITC has thus issued a Limited Exclusion Order to restrict import into the USA of SiS chipsets manufactured under process related to that claim.

Although some can think that it is the triumph of justice, it now appears that it is too late. SiS has already adopted a new manufacturing technology that does not affect any rights of UMC. As a result, the core-logic developer will continue to import all of its current products.

Earlier this year some of the sources told me that SiS may actually ask UMC to manufacture chips for them, since the company itself constantly feels the lack of manufacturing facilities and may be unable to fulfil the demand. Well, when all the legal disputes are finally sorted out, maybe it is the right time for SiS to become friends with their Taiwanese neighbours?