TSMC and GlobalFoundries settle litigation with patent cross-license agreement

Posted on Tuesday, October 29 2019 @ 9:44 CET by Thomas De Maesschalck
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A month or two ago, GlobalFoundries shocked the semiconductor world by suing TSMC and the latter's clients and distributors. Some weeks later, TSMC countersued GlobalFoundries for patent infringement of 25 patents. This conflict is now resolved as TSMC and GlobalFoundries came to an agreement to settle all outstanding litigation via a broad patent cross-license agreement. The agreement covers each foundry's existing semiconductor patents as well as the patents that will be filed during the next 10 years.
TSMC and GLOBALFOUNDRIES (GF) today announced they are dismissing all litigation between them as well as those that involve any of their customers. The companies have agreed to a broad life-of-patents cross-license to each other’s worldwide existing semiconductor patents as well as those patents that will be filed during the next ten years as both companies continue to invest significantly in semiconductor research and development.

This resolution guarantees TSMC and GF freedom to operate and ensures that their respective customers will continue to have access to each foundry's complete array of technologies and services.

“We are pleased to have quickly reached this settlement that acknowledges the strength of our respective intellectual property. Today’s announcement enables both of our companies to focus on innovation and to better serve our clients around the world,” said Thomas Caulfield, CEO of GF. “This agreement between GF and TSMC secures GF’s ability to grow and is a win for the entire semiconductor industry which is at the core of today’s global economy.”

“The semiconductor industry has always been highly competitive, driving the players to pursue innovation that enriched the lives of millions of people around the world. TSMC has invested tens of billions of dollars towards innovation to reach our leading position today,” said Sylvia Fang, General Counsel for TSMC. “The resolution is a positive development that keeps our focus on advancing the needs of our customers for technologies that will continue to bring innovation to life, enabling the entire semiconductor industry to thrive and prosper.”


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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