SMIC, the mainland's top maker of made-to-order microchips, denied yesterday an accusation by bigger rival TSMC that it violated a patent deal, and said it had filed a counter-complaint against the Taiwan company.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's top contract chip maker, said last month it had filed a lawsuit in the US California State Superior Court against Semiconductor Manufacturing International Corp (SMIC) and its units in Shanghai, Beijing and the United States.

"In addition to filing a response strongly denying the allegations of TSMC in the United States lawsuit, SMIC filed a cross-complaint against TSMC, seeking, among other things, damages for TSMC's breach of contract and breach of implied covenant of good faith and fair dealing," SMIC said in a statement.

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