Richard Chang, who had tried to challenge the world’s largest contract chipmaker with a rival operation in China, bowed out on Tuesday following the settlement of long-running patent litigation.

Mr Chang resigned as chief executive of Semiconductor Manufacturing International (SMIC), China’s largest chipmaker which he founded nine years ago, after Taiwan Semiconductor Manufacturing (TSMC) agreed to settle a long-running trade secrets battle with a $200m payment from SMIC and a 7.4 per cent stake in the Chinese company.