TSMC and GlobalFoundries settle patent disputes with cross-licensing agreement

Agreement sets aside multiple lawsuits that dealt with over 40 patents.

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Semiconductor manufacturers Taiwan Semiconductor Manufacturing Company (TSMC) and GlobalFoundries have settled their various patent disputes against each other, as well as those that involved any of their customers.

The settlement sets aside the 25 legal complaints that GlobalFoundries filed against TSMC back in September, which accused the Taiwanese company of infringing 16 patents. TSMC's clients, which include Apple, Google, Broadcom, Motorola, Nvidia, Cisco, Lenovo, TCL, and Asus, were also named on GlobalFoundries' complaints as they imported TSMC's semiconductors that allegedly infringed the patents. 

The multiple lawsuits that TSMC issued earlier this month against GlobalFoundries' initial complaints will also be dismissed as part of the settlement. The lawsuits had alleged that GlobalFoundries infringed upon 25 patents related to TSMC's node processes.

See also: Inside GlobalFoundries' long road to the leading edge

In addition to all litigation being dismissed, the companies also agreed to a patents cross-licence that will allow them to use each other's existing semiconductor patents, as well as any semiconductor patents that either company files during the next 10 years. 

"This agreement between GlobalFoundries and TSMC secures GlobalFoundries' ability to grow and is a win for the entire semiconductor industry which is at the core of today's global economy," said Thomas Caulfield, GlobalFoundries CEO.  

The cross-licence was agreed upon by both companies as they want to continue investing significantly in semiconductor research and development, the companies said. 

"This resolution guarantees GlobalFoundries 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," the companies said.

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