TSMC and GlobalFoundries reach a lawsuit settlement, promising to cross-license each other’s patents in the next ten years

Beijing time on the 29th news, TSMC and competitor GlobalFoundries announced that they agreed to withdraw all patent litigation between the two parties and patent litigation involving its customers. In a joint statement, the two sides said they would cross-license each other’s patents as well as patents filed over the next decade.

In fact, it is quite common for technology companies to have related patents, because of the historical origin, GlobalFoundries and TSMC have thousands of related patents, some of which originated from AMD and IBM.

But patents are a technology company’s most valuable asset, and it’s also about economic interests, so lawsuits between technology companies are always going on. Earlier, GlobalFoundries had been accusing TSMC of infringing the company’s patents. TSMC said in its first lawsuit in August that the allegations were baseless and would defend itself in court. TSMC has filed a countersuit against its rival, accusing GlobalFoundries of infringing multiple of its own patents. But it didn’t take long for the two companies to reach a settlement.

The settlement was reached, according to the announcement, in order to ensure that the operations of TSMC and GlobalFoundries are not restricted, and that customers of both parties can continue to obtain the complete technologies and services of the two companies. The core reason is that the two companies’ choice of “joint” is likely to be related to the current downward cycle of the semiconductor industry.

Under normal circumstances, under the influence of technology and the macro economy, the global semiconductor industry shows a 4-6-year cycle of upward development. At present, due to the weak demand for downstream smartphones, automobiles, and industries, semiconductor inventories are generally backlogged, and the global semiconductor industry The industry has entered a downward cycle. Therefore, for TSMC and GlobalFoundries, it is a wise move to choose a combination at this time. It is conducive to stimulating the vitality of the manufacturing industry and helping each other to better tide over the difficulties.

In this regard, GlobalFoundries CEO Thomas Caulfield said, “We are very pleased to be able to reach an agreement with TSMC soon. This agreement recognizes the strength of the intellectual property rights of both parties, enabling our two companies to focus on innovation and contribute to their respective Better service for global customers. At the same time, the agreement also ensures GF’s ability to continue to grow, and for the semiconductor industry, which is the core of the global economy, is also conducive to the successful development of the entire industry.

Fang Shuhua, deputy general manager and chief legal officer of TSMC, said that competition in the semiconductor industry has always been fierce, driving industry players to pursue technological innovations to enrich the lives of millions of people around the world. TSMC has invested tens of billions of dollars in technological innovation to achieve today’s leadership. This agreement is a very welcome positive development, as we continue to focus on meeting the technological needs of our customers, sustaining the vitality of innovation, and making the entire semiconductor industry more prosperous.

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