Monday, October 28th 2019
GLOBALFOUNDRIES and TSMC Announce Resolution of Global Disputes Through Patent Cross-Licensing
GLOBALFOUNDRIES (GF) and TSMC 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 GF and TSMC 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."
"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."
29 Comments on GLOBALFOUNDRIES and TSMC Announce Resolution of Global Disputes Through Patent Cross-Licensing
This already suggests one part is false. And it's the first one.
A company-company agreement usually doesn't (and fundamentally shouldn't) result in lower prices. It would make no sense for the parties involved.
Objectively speaking, this looks like preparations to sell GF (currently owned by Mubadala). An open IP dispute would make it difficult to find an investor.
Best guess would be: there's already someone interested but he demanded this issue to be fixed.Because that's how the world works. Google: "reality".
Specialized high-tech business is built around IP. A company must have a clean sheet when it comes to what it's allowed to do.
Even if a company makes excellent chips with huge profit, it isn't worth much as long as there is no guarantee it will be able to continue to do so.
And if they don't secure IP, there's always a chance someone will sue them, win the case and the company will be shut down.
What do you mean? They just ended that like friends shaking hands, helping each other progress technology?!
I demand blood! I demand drama! What is this?! Disgusting!
Meaning, they invent new technology to get even more money and improving lives of consumers is a side effect to that action. :P
yhe +1 for GF get lucky, they wanted to steal the progress of TSMC and now they did
AMD had fabs some 20 years before TSMC. GF bought IBM fabs and patents. GF is collaborating with Samsung, which also has fabs.
Perhaps they're not the best currently, had bad misses in the past, and not a bleeding edge now, but still? Would another competitor to Intel/TSMC actually harm the market?
Holy TSMC possesses all the knowledge about production, and worthless GF - who was suing for thousands of patents, did that exclusively for evil and get away? AMD and IBM fabs had no worthy patents at all in their 60+ years history, and it's completely impossible that TSMC, youngest of them all, actually made patent infringement?
GF may look like a bad newcomer at market, but in fact they go a long time. IBM currently lives mainly from extremely strong research teams who make discoveries or improve existing stuff and then patent and sell it. I wouldn't underestimate thousands of their patents - GF most likely just wanted those, but they came in package with foundry. Some of those are probably old, but some are bleeding-edge, which are few years to implementation.
All taken in, I'm happy that matter is resolved this way, both companies will probably profit from agreement.
And no, it wasn't "a lucky day for GF", it was for both companies and us, customers, who will probably suffer less from shortages due to low yields or slow ramping up, not to forget that competition typically benefits customers, too.
IP is the foundation of this business. Defending this IP in court is an essential part of the whole concept. It's not "money lost on lawyers".
You're creating a theory that's fundamentally flawed.
Yes, this settlement is very likely cheaper than going to court (that's the point of settlements).
The interesting part is: why do you think any "saved money" would be used to lower prices for consumers? Is there any gain for the companies? :D
If you don't see how naive your suggestion was, I have a better one.
Any two companies (like Intel and AMD) could make a deal as well. They could meet and say: "hey, we're losing so much money because of all this fighting for market share - why not end this today and save money?"
And do you think that saved money would result in lower retail prices? Seriously? :D
Expect prices to rise a couple cents at the very least :roll: