SMIC entered into a settlement agreement with TSMC to resolve all pending lawsuits between the parties, including the legal action filed by TSMC in California for which a verdict was returned by the jury against SMIC on November 4, 2009 and the legal action filed by SMIC in Beijing. SMIC and TSMC have entered into a settlement agreement on November 9, 2009 to settle and dismiss the California case, including all claims and defenses of SMIC yet to be decided in that case and SMIC's appeal in the Beijing case, thus concluding all pending court litigation between the parties.