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TSMC And Global Foundries Squash Disputes, Strike Broad Patent Cross-License Deal

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For the last few months, TSMC and Global Foundries have been wrangled in legal battles, stemming from alleged patent infringements. Back in August, Global Foundries filed patent infringement lawsuits against TSMC in the U.S. and Germany, seeking injunctions against chips produced by TSMC to prevent their shipments into the countries. Then earlier this month, TSMC counter-sued claiming similar infringements against Global Foundries.

It appears, however, that the two companies have just squashed their disputes and put a broad reaching cross-license to each other’s worldwide existing semiconductor patents in place.

“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 Global Foundries. “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.”

TSMC and Global Foundries manufacture chips for virtually all of the top names in tech – Samsung, AMD, NVIDIA, Google, you name it. This new agreement not only puts an end to the legal concerns, but it allows both companies (and their customers) to operate without fear of further litigation.

“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.”

In addition to existing patents, any patents that may be filed during the next ten years are bound by this agreement well, so the heads of both companies all of TSMC’s and Global Foundries’ customers can now breathe a collective sigh of relief.

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