Rival chipmakers TSMC and GlobalFoundries reach cross-licensing agreement

The agreement will last 10 years!

What you need to know

  • TSMC and GlobalFoundries have signed a cross-licensing agreement.
  • It brings to an end a 2 month legal battle over semiconductor patents and technology.
  • Any kind of ruling may have resulted in an impact on the supply of iOS devices.

Rival chipmakers TSMC and GlobalFoundries have signed a cross-licensing agreement regarding certain semiconductor patents, resolving their ongoing legal battle and averting fears an unfavorable ruling could result in a ban on the import of certain devices, including Apple products, in the US, Germany and Singapore.

As reported by AppleInsider:

Taiwan Semiconductor Manufacturing Company and competitor GlobalFoundries on Monday inked an agreement to cross-license certain patents related to semiconductor technology, resolving a two-month-old multi-jurisdictional legal dispute that threatened the businesses of customers like TSMC partner Apple.
Under terms of what is being billed as a “broad” global patent cross-licensing deal, TSMC and GlobalFoundries will license each other’s existing worldwide semiconductor patents, as well as future intellectual property filed in the next 10 years, in a bid to halt hostilities.

According to the report the agreement will allow both companies to freely access each other’s technologies and services. It also means that there is no danger posed to TSMC customer Apple. The initial lawsuit raised by GlobalFoundries sought a ban on the import of devices which used technology it believed infringed on its patents. It claimed that Apple was amongst the customers that could be affected and included countries such as the US and Germany. A countersuit by TSMC was lodged, paving the way for settlement, which now seems to have been reached.

TSMC is touted as the world’s largest contract chipmaker, and is responsible for Apple’s A13 Bionic chip, which powers the iPhone 11.