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GlobalFoundries files patent infringement lawsuits against Tower Semiconductor

Friday, March 27, 2026 at 01:08 AM

GlobalFoundries has initiated legal action against Tower Semiconductor, filing patent infringement lawsuits both with the International Trade Commission and in a Texas federal court. This legal dispute impacts the competitive landscape of the foundry market and could potentially lead to import bans or licensing requirements for specific semiconductor manufacturing processes used by Tower Semiconductor.

Context

On March 26, 2026, U.S.-based GlobalFoundries ($GFS) filed major patent infringement lawsuits against its Israeli rival Tower Semiconductor ($TSEM), alleging the unlawful use of 11 proprietary manufacturing process technologies. The legal action includes two complaints filed in the U.S. District Court for the Western District of Texas and a petition with the U.S. International Trade Commission (ITC). GlobalFoundries is seeking damages for lost profits and an import ban to block the entry of infringing chips into the United States. This legal escalation marks a significant tension point in the specialty foundry market, where both companies compete for high-growth sectors like 5G/6G, automotive, and IoT. Following the news, Tower Semiconductor shares dropped 7.45%, while GlobalFoundries fell 4.64%, both underperforming the broader market. Tower has vowed to vigorously defend its intellectual property, highlighting its own extensive R&D and manufacturing footprint in the United States.

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