SAN FRANCISCO, March 26 (Reuters) - GlobalFoundries on Thursday said it has sued Israel-based rival Tower Semiconductor, alleging that Tower Semiconductor infringed on 11 GlobalFoundries patents that
GlobalFoundries files patent infringement lawsuits against Tower Semiconductor
Overview of the Patent Dispute
By Stephen Nellis
Details of the Lawsuit
SAN FRANCISCO, March 26 (Reuters) - GlobalFoundries said on Thursday it has sued Israel-based rival Tower Semiconductor, alleging that Tower Semiconductor infringed on 11 GlobalFoundries patents that relate to manufacturing chips that go into smartphones and other electronic devices.
Legal Actions Taken
GlobalFoundries said it has filed two complaints in the U.S. District Court for the Western District of Texas and one with the U.S. International Trade Commission. The Malta, New York-based semiconductor manufacturer said the ITC case will seek to block the import into the U.S. of chips made by Tower Semiconductor that were made with technologies covered by the patents in the case.
Tower Semiconductor's Response
Tower Semiconductor said in a statement that it "firmly rejects the allegations made by GlobalFoundries and will vigorously defend its intellectual property and technology leadership."
Commitment to R&D
"The company has a long-standing track record of substantial R&D investment in both the United States and globally, supported by two U.S. manufacturing facilities and leading-edge R&D centers," Tower said.
Market Impact
Stock Performance
Tower Semiconductor shares closed down 7.45% on Thursday, and GlobalFoundries shares fell 4.64%, both larger drops than broader market indices such as the Nasdaq Composite Index, which closed down 2.38%.
Industry Context
Specialty Chipmakers
While large chip manufacturers such as Taiwan Semiconductor Manufacturing Co and Intel focus on making the fastest and smallest computing chips, GlobalFoundries and Tower Semiconductor are specialty chipmakers that focus on niches such as radio-frequency chips and silicon photonics.
GlobalFoundries' Expansion Plans
GlobalFoundries last year said it planned to spend $16 billion to expand its facilities in Vermont and New York, with a focus on research and development.
(Reporting by Stephen Nellis in San Francisco; Editing by Chizu Nomiyama, Rod Nickel)
