GlobalFoundries accused Tower of unlawfully using its protected analog, radio frequency and silicon photonics technologies to produce semiconductors for the smart mobile, automotive and aerospace sectors.

The patents vary in function and type, ranging from a protected “high voltage device” to a “self-aligned liner formed on metal semiconductor alloy contacts,” according to one of the complaints. GlobalFoundries alleged that Tower’s infringed products were sold or produced in the United States. Tower has two domestic manufacturing plants in Newport Beach, California, and San Antonio, Texas.

“Our actions are necessary to defend our intellectual property, protect the innovation that underpins it, and to ensure that competitors play by the same rules,” Gregg Bartlett, GlobalFoundries’ chief technology officer, said in a statement.

GlobalFoundries formed in 2009 as a chipmaking offshoot of AMD. It later acquired IBM’s microelectronics facilities in Burlington, Vermont, in 2015, as well as thousands of IBM patents and applications, court documents show. The company is a major supplier to the U.S. Department of Defense and reported fourth quarter revenue of $1.83 billion, driven by booming artificial intelligence and data center demand.

GlobalFoundries said it has over 8,000 patents achieved from billions of dollars of investments over the past decade, whereas Tower has less than 500 patents.

“Companies that attempt to extract value from patented process technologies without authorization or investment undermine fair competition and the integrity of the semiconductor ecosystem,” Bartlett said. GlobalFoundries is seeking compensation for any lost profits.

Tower rejects GlobalFoundries’ allegations, Orit Shahar, director of public relations and marketing communications, told Manufacturing Dive.

“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,” he wrote in an email.

Tower reported fourth quarter revenue of $440 million, up 14% over the previous year. It also posted a net profit of $80 million.

“With a focused strategy, strong customer alignment, and continued investment in high-value technologies, Tower remains well positioned to deliver sustainable, profitable growth while supporting its U.S. and global customers,” Shahar added.

Tower’s legal troubles follow other challenges in recent years. In 2023, Intel canceled its bid to acquire the company after Tower failed to obtain regulatory approvals in a timely manner. Talks of a proposed $10 billion joint venture between Tower and India-based Adani Group were paused last year, Reuters reported, citing a lack of funding and market concerns.

More recently, Intel retreated from a deal to manufacture 300-millimeter wafers for Tower’s customers in New Mexico. Tower last week moved to restructure its Japan operations to handle the lost capacity.

By: DocMemory
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