TSMC, Globalfoundries Settle Patent Infringement Lawsuits

By Robert Wall

Chipmakers Taiwan Semiconductor Manufacturing Co. and smaller rival Globalfoundries Inc. said they have settled a tit-for-tat legal dispute over alleged patent infringement.

The two companies, in a joint statement Monday, said they have agreed to a broad cross-license agreement and dismissed all litigation between each other.

Globalfoundries in August kicked off the legal battle when it alleged in 25 complaints filed across courts in Germany, Texas and Delaware -- and before the U.S. International Trade Commission -- that TSMC violated more than a dozen patents covering chips and methods for making them. TSCM countered with its own legal challenge last month.

GlobalFoundries Chief Executive Thomas Caulfield, in a statement, said resolving the legal dispute would allow his company to grow. Santa Clara, Calif.-based Globalfoundries is aiming to pursue an initial public offering in 2022, Mr. Caulfield previously told The Wall Street Journal.

TSMC General Counsel Sylvia Fang, in the statement, also welcomed the settlement.

Write to Robert Wall at Robert.Wall@WSJ.com

(END) Dow Jones Newswires

October 28, 2019 19:35 ET (23:35 GMT)

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