TSMC, Global Foundries reach record settlement

[Marcin + 519]

https://www.eetimes.com/document.asp?doc_id=1335248

The settlement this week between TSMC and GlobalFoundries appears to be a David vs. Goliath victory with the smaller US foundry gaining access to Taiwanese TSMC patents for years.

TSMC may have simply “thrown a bone” to GlobalFoundries (GF), which has no ability to use the most valuable of those patents because it dropped out of the Moore’s Law race at the 7 nm mark, according to Robert Maire, president of Semiconductor Advisors.

“GF got a better deal through the cross licensing of patents with TSMC,” Maire said to EE Times. “GF is the winner, although using the term ‘winner’ may be a bit misleading. It doesn’t matter if TSMC throws them a bone. GF is out of the game.”

The U.S. authorities were inclined to reach a decision on TSMC that would have hurt the company and its customers, according to one analyst surveyed by EE Times who requested anonymity.

One of the key questions is if the views towards Taiwan and the Taiwanese technology sector are shifting in American semiconductor and polical circles. UMC, the no 2 Taiwanese foundry,  is still facing a civil and criminal case in court, it has basically been accused by the US government (!) of spying on behalf of China, quite extraordinary. Taiwan normally is seen as an ally of the USA and is protected by the USA.

Washington has over the past year repeatedly asked the government of president Tsai Ing-wen to restrain Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, from selling chips to Huawei, according to Taiwanese and US government officials. Last month, a US official told Taiwanese diplomats in Washington that chips made by TSMC for Huawei were going straight into Chinese missiles pointing at Taiwan — a statement intended as a "metaphor" illustrating the risks of supplying China."

40% of TSMC revenue comes from Chinese market. TSMC supplying the Chinese market is crucial for China in the next 5 years. US is doing everything to stop TSMC supplying Chinese. Because of this fact TSMC had to "voluntarily" give up its intellectual property to United States company (sounds familiar ?)

China-US economic war is played by US  mainly in areas where China is most vulnerable: crude oil access and semiconductor technology.

 

[Marcin + 519]

For crude oil this is the place to understand US mentality. For semiconductors many sites, eetimes is very good.

Edited November 12, 2019 by Marcin

[Marcin + 519]

Interesting piece from Financial Times:

https://www.ft.com/content/6ab43e94-fca8-11e9-a354-36acbbb0d9b6

While Washington recognises that Taiwan is unlikely to rein in TSMC ahead of January’s presidential election, the administration said that additional export controls on chip trade with China should be a next step for the country. “We expect that Taiwan will take a closer look at those considerations in the near future,” the US official said.