GlobalFoundries Sues TSMC Over Patent Infringement; Apple, Qualcomm, Others Named Defendants

GlobalFoundries has filed a lawsuit against TSMC and its clients in the USA and Germany alleging the world’s largest contract maker of semiconductors of infringing 16 of its patents. Among the defendants, GlobalFoundries named numerous fabless developers of chips, including Apple, NVIDIA, Qualcomm, and many others. The plaintiff seeks damages from TSMC and wants courts to ban shipments of products that use semiconductors allegedly infringing its patents into the USA and Germany.

GlobalFoundries says that TSMC infringed 16 of its patents covering various aspects of chip manufacturing (details), including those chips that use FinFET transistors. In particular, the company claims that TSMC’s 7 nm, 10 nm, 12 nm, 16 nm, and 28 nm nodes use its intellectual property. Considering that these manufacturing processes are used to make more than a half of TSMC’s chips (based on revenue share), the potential damages being claimed by GlobalFoundries may reach the billions of dollars.

GlobalFoundries filed complaints in the US International Trade Commission (ITC), the U.S. Federal District Courts in the Districts of Delaware and the Western District of Texas, and the Regional Courts of Dusseldorf, and Mannheim in Germany. In its lawsuits GlobalFoundries demands damages from TSMC and wants courts to bar products that allegedly infringe its rights from being imported into the U.S. and Germany.

Owing to the legal requirement to file claims against the companies who are actually infringing on GlobalFoundries' patents within the United States – TSMC itself is based in Taiwan, so their manufacturing operation is not subject to US jurisdiction – the suit also includes several of TSMC's customers, all of whom import chips into the US that are built using the technology under dispute. Among the big names accused of infringing upon GlobalFoundries' IP are Apple, ASUS, Broadcom, Cisco, Google, NVIDIA, Lenovo, and Motorola. Accordingly, if the courts were to take GlobalFoundries’ side and issue an injunction, such an action would prevent importing a wide swath of tech products, including Apple’s iPhones, NVIDIA GeForce-based graphics cards, smartphones running Qualcomm's SoCs made by TSMC, various routers, as well as devices (e.g., PCs, smartphones) by ASUS and Lenovo containing chips made by TSMC.

GlobalFoundries says that it wants to protect its IP investments in the US and Europe. Here is what Gregg Bartlett, SVP of engineering and technology at GlobalFoundries, had to say:

“While semiconductor manufacturing has continued to shift to Asia, GF has bucked the trend by investing heavily in the American and European semiconductor industries, spending more than $15 billion dollars in the last decade in the U.S. and more than $6 billion in Europe's largest semiconductor manufacturing fabrication facility. These lawsuits are aimed at protecting those investments and the US and European-based innovation that powers them. For years, while we have been devoting billions of dollars to domestic research and development, TSMC has been unlawfully reaping the benefits of our investments. This action is critical to halt Taiwan Semiconductor’s unlawful use of our vital assets and to safeguard the American and European manufacturing base."

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Source: GlobalFoundries