TSMC files patent countersuit against GlobalFoundries
The suits come just over a month after GlobalFoundries sued TSMC for patent infringement and have been filed in the United States, Germany and Singapore.
As is usual in such complaints, TSMC is demanding Globalfoundries be told to stop selling the products that are alleged to infringe, and pay substantial damages. And if GlobalFoundries is found to have wilfully infringed there is the possibility, at least in the US, of triple damages being awarded.
TSMC said infringements are present in GlobalFoundries’ 40nm, 28nm, 22nm, 14nm, and 12nm node processes and possibly other processes. The referenced nodes include processes that are bulk CMOS and FinFET at Globalfoundries, but also cites nodes that include fully-depleted silicon-on-insulator (FDSOI) processes.
TSMC, which controls about 50 percent of the foundry market, said the 25 patents cited relate to a diverse set of technologies, including FinFET designs, shallow trench isolation techniques, double patterning methods, seal rings and gate structures, and contact etch stop layer designs.
It remains unclear whether FDSOI processes are implicated in the patent suits. FDSOI is an alternative style of IC manufacturing to the FinFET, that has been pioneered by STMicroelectronics, GlobalFoundries and Samsung.
Next: GlobalFoundries position
A spokesperson for GlobalFoundries provided the following statement: “TSMC has long used its dominant market position to exert pressure on its smaller competitors, and the retaliatory litigation filed today is in keeping with that history. We have confidence in our position and the legal process, and we are not intimidated by these actions.”
TSMC said it has more than 37,000 patents granted worldwide and in 2018 was ranked as one of the top ten companies granted US patents for the third consecutive year.
GlobalFoundries is owned by the sovereign wealth fund of Abu Dhabi, which over the last decade had spent approximately $10 billion trying to establish GlobalFoundries in the foundry market.
In August of 2018 GlobalFoundries took TSMC to court alleging infringement of 16 patents; allegations which TSMC denied.
However, at about the same time the company GlobalFoundries opted to pull back from pursuing foundry operations at the leading edge (see GloFo rethinks its future, drops 7nm FinFET).
It had effectively been outrun by TSMC with its ability to invest in processes and manufacturing capacity, although GlobalFoundries alleged this process had also been enabled by unfair sales practices (see Analysis: Outpaced by TSMC, GloFo cuts its cloth).
Next: History of anitpathy
The dispute between the two foundries goes back at least to September 2017 when GlobalFoundries asked the European Union to investigate TSMC for alleged unfair practices (see Report: GlobalFoundries accuses TSMC of unfair selling). These practices were said to include demands for exclusivity in contracts, offers of loyalty rebates, the bundling of sales, and threats of restricting access to TSMC’s semiconductor production.
Some of these activities may be legal when pursued by smaller companies but may be considered anti-competitive when performed by a dominant market leader. As such legality can hinge on the definition of the market that is under consideration. Companies that are found to have behaved anti-competitively by the European authorities can be fined up to 10 percent of their annual revenues.
Sylvia Fang, vice president and general counsel for TSMC, said in a statement: “TSMC’s lawsuits seek to protect our reputation, our significant investments, our nearly 500 customers, and consumers worldwide to ensure everyone benefits from the most advanced semiconductor technologies that enable a wide range of applications such as mobile, 5G, AI, IoT and high performance computing, which are critically important to the public interest.”
Related links and articles:
News articles:
TSMC responds to Globalfoundries’ lawsuits
GloFo takes TSMC to court over process patents
GloFo rethinks its future, drops 7nm FinFET
Analysis: Outpaced by TSMC, GloFo cuts its cloth
Report: GlobalFoundries accuses TSMC of unfair selling
Report: Globalfoundries asks China to probe TSMC
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