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GlobalFoundries sues Tower Semiconductor over chip manufacturing patents

Sherri Wang, DIGITIMES Asia, Taipei 0

Credit: GlobalFoundries (GF)

GlobalFoundries has filed multiple lawsuits against rival Tower Semiconductor, alleging infringement of 11 patents related to chip manufacturing technologies used in smartphones and other electronic devices.

According to Reuters, the US-based chipmaker filed two complaints in the US District Court for the Western District of Texas and another with the US International Trade Commission (ITC). The ITC case seeks to block imports into the US of chips made by Tower using the disputed technologies.

The case underscores intensifying competition among specialty chipmakers as demand grows for differentiated semiconductor technologies.

Legal action targets core manufacturing technologies

In a statement, GlobalFoundries said the complaints allege that Tower "unlawfully uses GF's patented manufacturing process technologies," describing the actions as an attempt to "freeride on decades of GF innovation" and unlawfully take business from the company.

The lawsuits cover 11 US patents tied to high-performance semiconductor technologies used in smart mobile devices, automotive systems, aerospace, and communications infrastructure. GlobalFoundries said it is seeking injunctive relief to block the importation and sale of allegedly infringing products in the US, as well as compensation for lost profits.

"Semiconductor manufacturing is one of the most complex and capital-intensive industries in the world," said Gregg Bartlett, CTO at GlobalFoundries. "There is no shortcut to real innovation. Companies that attempt to extract value from patented process technologies without authorization or investment undermine fair competition and the integrity of the semiconductor ecosystem. Our actions are necessary to defend our intellectual property, protect the innovation that underpins it, and ensure that competitors play by the same rules."

Tower rejects allegations, vows defense

Tower Semiconductor said in a statement that it "firmly rejects the allegations made by GlobalFoundries and will vigorously defend its intellectual property and technology leadership."

"The company has a long-standing track record of substantial R&D investment in both the US and globally, supported by two US manufacturing facilities and leading-edge R&D centers," Tower said.

GlobalFoundries and Tower Semiconductor operate as specialty chipmakers, focusing on segments such as radio-frequency chips and silicon photonics, rather than the most advanced logic nodes targeted by companies such as Taiwan Semiconductor Manufacturing Co and Intel.

GlobalFoundries said it has built a portfolio of more than 8,000 patents through sustained research and development and long-term process innovation. The company added that it has invested in domestic semiconductor manufacturing and plans to spend up to US$16 billion to expand facilities in Vermont and New York, including about US$3 billion dedicated to research and development in emerging technologies.

The company said it will continue to enforce its intellectual property rights as part of efforts to support fair competition in the semiconductor industry.

Article edited by Jack Wu