TSEM News & Events

GlobalFoundries (GFS) has filed multiple lawsuits in the U.S. against Tower Semiconductor (TSEM) alleging that it has infringed GF patents by freeriding on decades of GF innovation with an intent to unlawfully take business away from the American chipmaker. The lawsuits were filed today in the U.S. International Trade Commission and the United States District Court for the Western District of Texas. The complaints allege that Tower, a competing semiconductor manufacturer, unlawfully uses GF's patented manufacturing process technologies, engaging in unlicensed exploitation of GF's R&D investments rather than undertaking the costly, long-term research required to develop these capabilities independently. The actions assert infringement of 11 GF U.S. patents protecting high-performance technologies critical to smart mobile, automotive, aerospace and communications infrastructure, and seek injunctive relief to block Tower's importation and sale of infringing products in the U.S. as well as to compensate GF for any lost profits.

Tower Semiconductor announced a strategic restructuring of its Japan operations, which are currently organized under TPSCo, under which Tower will take full ownership of the 300mm facility to be organized under a fully owned Japanese subsidiary of Tower, while NTCJ will take full ownership of the 200mm facility. As part of this strategic restructuring, the companies will enter into mutual long-term supply agreements, ensuring continued support for existing customers of both companies. Accordingly, Tower customers currently served through Fab 5 and Nuvoton customers served through Fab 7 will experience no disruption to supply or operations. The transaction is targeted to close on April 1, 2027, subject to the satisfaction of customary closing conditions, and receipt of applicable regulatory approvals. TPSCo, previously a 51%-owned subsidiary of Tower, has demonstrated strong operational and R&D capabilities and has been fully integrated into Tower's global operations and business units. Under the new structure, Tower's new wholly owned subsidiary in Japan will own all Fab 7 manufacturing production tools, operations, employees, and business activities, further strengthening Tower's global strategic footprint. As part of the agreement, Tower has an option to purchase the existing Fab 7 building and land. Contingent upon subsidy approval from Japan's Ministry of Economy, Trade and Industry, following the formal application, Tower will purchase the adjacent land under pre-agreed terms between Tower and NTCJ to support the expansion of its 300mm capacity and capabilities. Tower targets the combined capacity across the existing facility and the intended adjacent expansion to result in four times the current Uozu 300mm capacity once completed. Given that the company's photonics technologies are already qualified and shipping in volume from F7 Uozu, Tower believes this intended capacity investment to full volume shipments will be substantially accelerated. The first increases in photonics shipments are expected to occur immediately upon each new tool to arrive in the expanded fab footprint. This expansion is targeted to occur in a fab that is presently strongly cash from operations positive and is targeted to stay so during the entire build-out period.