Released on = July 10, 2007, 2:05 pm

Press Release Author = Lala C. Ballatan

Industry = Law

Press Release Summary = Microchip Technology, Inc. maker of semiconductor products
announced that it will file charges against a Chinese company, which allegedly
manufactures copied microcode and some other information that are proproprietary
information of the company. The semiconductor manufacturer based in Chandler,
Arizona declared this statement on Wednesday.

Press Release Body = Microchip Technology, Inc. maker of semiconductor products
announced that it will file charges against a Chinese company, which allegedly
manufactures copied microcode and some other information that are proproprietary
information of the company. The semiconductor manufacturer based in Chandler,
Arizona declared this statement on Wednesday.

Los Angeles, California, July 5, 2007 - Microchip sued the Shanghai Haier Integrated
Circuit Co., a unit of Haier Group, which is a Chinese appliance maker, for
copyright infringement. The lawsuit was filed in the Number 1 Intermediate Court at
Shanghai.

While several lawsuit details and the damages required were not yet disclosed by the
Microchip, the company's Asia - Pacific vice president, William Yang, made a
statement written and addressed for the media.

According to the statement, the industry and the company relies on intellectual
property as its backbone. Thus, since they have found out that an infringement of
their intellectual property has occurred, the company has done important measures
that are necessary to protect their assets.

Meanwhile, the Shanghai Haier IC in Shanghai declared that the allegations of
Microchip in the statement and the lawsuit were untrue.

The Chinese company also released statement that their semiconductors designs were
all self-developed, fully by their own copyright of intellectual property. The
Microchip's computer chips were not well matched with their own. With these, the
SHIC intends to fight for what is true and protect their rights, too.

The intellectual property infringement case revolves around a microcode embedded in
the PIC16CXXX microcontrollers of Microchip Technology. These are used in many kinds
of industries like industrial automation, telecommunications equipment, vehicles and
consumer electronics.

Furthermore, Microchip is alleging that Shanghai Haier IC copied some datasheets
that details the operation and use of Microchip's microcontrollers.

As a legal action closely related to the one they filed against SHIC, Microchip
Technology also sued the Linkage Technology Co. located in Hsin Chu County,
Taiwan's high tech hub. The said company claims to be the Taiwanese distributor of
SHIC.






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