Taiwan foundry UMC has won a ruling against Taiwan's Silicon Integrated Systems (SiS) in an investigation at the US International Trade Commission (ITC). The SiS is illegally manufacturing products using a patented UMC process, according to the ruling. A Limited Exclusion Order directs the US Customs Service to bar US entry of all SiS products made with the infringing process.

There is a 60-day period for US Presidential review before implementation of
the decision. During this period, infringing SiS products may be imported
only if a bond is posted with the US Customs Service for 100% of product
value for each chipset and graphics chip, and 39% of product value for each
motherboard containing those products. If the decision stands after the 60
days, then infringing products will be barred from importation or sale until
2017.
UMC has also asserted claims in a US civil lawsuit, where SiS is accused of
patent infringement, misappropriation of trade secrets and other unlawful
conduct. UMC alleges that SiS hired UMC engineers and improperly used
proprietary UMC information to develop technology to enter the semiconductor
manufacturing business, in systematic violation of UMC's intellectual
property rights.
For its part, SiS points to a preliminary determination by an ITC
Administrative Law Judge (ALJ) holding that the UMC patents in question are
invalid. SiS claims that the ITC has supported this view in the final
determination, with respect to all but one of the 29 individual claims. The
Limited Exclusion Order relates to that claim.
SiS says that even though it partially disagreed with the determination, it
has adopted a new process to manufacture redesigned products for import to
the US. The company claims that production and product shipments will be
unaffected, and that there will be no impact on customer supplies and
imports into the US.
SiS is contemplating an appeal of the adverse ruling to the US Court of
Appeals for the Federal Circuit.