Semiconductor Manufacturing International Corp (SMIC,
The company's shares fell after the announcement.
The loss would have been US$40 million had the company not reduced the value of patents for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) products it's allowed to license, Shanghai-based SMIC said in a statement yesterday.
HONG KONG IMPACT
The company's shares fell 2.6 percent to HK$1.12 (US$0.14) at the close in Hong Kong, after declining as much as 5.2 percent earlier.
The benchmark Hang Seng Index fell 0.2 percent.
In Taipei, TSMC shares fell 0.72 percent to close at NT$69.30 on the Taiwan Stock Exchange.
SMIC gained the right to license some TSMC products until 2010 after the two companies agreed to settle a patent infringement dispute in January 2005.
Under the agreement, SMIC must pay TSMC US$175 million over six years.
The restatement by SMIC came after the TSMC reopened the dispute by filing a suit on Aug. 25 in the California Superior Court of Alameda County, alleging its Chinese rival didn't comply with the January 2005 settlement.
SMIC responded by filing a counter-suit against TSMC with the Beijing High Court last November, accusing the Taiwanese company of "commercial defamation."
DELAYED REPORTING
The Chinese chipmaker, which was previously scheduled to report last year's earnings on March 29, delayed the release because auditors were still busy with their assessment, the company said on March 30.
Hong Kong and New York-listed SMIC also said it's restating earnings for 2004 and 2005 because of the accounting change over the product patents.
The company's 2005 net loss was US$114.8 million, instead of US$111 million, the statement said. SMIC earned net income of US$96 million in 2004, instead of US$89 million, the statement said.
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