No surprise there, really. Word from the inside is that the Italian chief operating officer "resigned" the day after former CEO Richard Chang also "resigned" -- for personal reasons, of course. Unless you have been on Mars, you know that Marco Mora has long been at the center of SMIC's troubles with TSMC because of his blatant attempts (and apparent success) in getting former TSMCers to bring over a few trivial trade secrets, whose worth appears to have been a not so trivial $375 million (and a few heads.)

I won't rehash all the details of this lurid affair. You can read the prequels: SMIC Needs to Change Its Ways, SMIC Hires A New CEO/Fixer -- And Boy Is There Alot to Fix, and SMIC: Sad End For A Good Man; Just Not A Manager.

Mora has been a dead man walking for a long time at SMIC. It's arguable as to whether Chang knew about Mora's nefarious activity early in the game, or was simply forced to support him after he found out. Either way, bad judgement on Chang's part. Mora should have found his own "personal reasons" for leaving the company long ago. Since many of SMIC's inner circle were hand-picked by Chang, it's safe to assume that a few others will also be shown the door -- certainly a change for the better at the ailing foundry.

SHAMELESS PLUG/HONEST DISCLOSURE: I work for RedTech Advisors (China) Ltd., which offers research, investment and strategy services related to China's ConsumerTech, CleanTech and MedTech markets.  For more info, please see www.redtechadvisors.com.