GlobalFoundries, TSMC drop respective lawsuits

GlobalFoundries and Taiwan Semiconductor (TSMC) have agreed to drop their respective lawsuits in exchange for a broad life-of-patents cross-licensing agreement between the two companies.

Competing semiconductor foundries GlobalFoundries and TSMC came to legal blows back in August when GlobalFoundries - the once and former fabrication arm of AMD before being spun out to shore up the company's at-the-time parlous finances - accused TSMC of infringing on a number of key patents. TSMC, naturally, followed with a countersuit of its own alleging that GlobalFoundries was infringing on TSMC patents.

Now, both companies have reached an agreement that sees all pending litigation dropped in exchange for licensing each other's patents - a draw, effectively.

'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,' claims Thomas Caulfield, GlobaFoundries chief executive, of the deal. '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,' adds 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.'