- GlobalFoundries has accused Tower Semiconductor of unauthorized use of its chip manufacturing technologies.
- The company is seeking remedies that could restrict Tower’s ability to import or sell affected products in the U.S.
- On Wednesday, Tower Semiconductor said it is reorganizing its Japan operations by taking full control of its 300mm Fab 7 facility.
Tower Semiconductor (TSEM) stock became the center of attention on Thursday as GlobalFoundries Inc. (GFS) launched a series of actions in the United States against the company, alleging unauthorized use of its semiconductor manufacturing innovations.
The firm said it filed complaints with both the U.S. International Trade Commission and a federal court in Texas, accusing Tower Semiconductor of using its chipmaking processes without permission.
Claims Focus On Core Semiconductor Technologies
GlobalFoundries claims the alleged actions enabled its competitor to benefit from years of internal research without bearing the associated development costs. The move signals a growing dispute between chipmakers as competition intensifies in advanced technology development.
The dispute involves 11 U.S. patents tied to advanced manufacturing processes used in sectors such as smartphones, automotive systems, aerospace applications, and communications infrastructure.
Tower Semiconductor stock traded over 6% lower on Thursday afternoon. On Stocktwits, retail sentiment around the stock changed to ‘bullish’ from ‘extremely bullish’ territory the previous day amid ‘extremely high’ message volume levels.
GlobalFoundries has sought legal remedies that could prevent Tower Semiconductor from importing or selling products tied to the contested technologies in the U.S., along with financial compensation for potential business losses.
First-Quarter Projections
In February, Tower Semiconductor projected first-quarter fiscal 2025 revenue of about $358 million, with a possible 5% variation on either side, slightly above the $355.54 million estimate.
In line with its plan to increase production capacity, the company said on Wednesday it is reorganizing its Japan operations by taking full control of its 300mm Fab 7 facility. Also, Tower and Oriole Networks announced a partnership to develop ultra-low-latency networking solutions for AI systems, supporting scalable, high-performance AI infrastructure.
TSEM stock has gained over 50% year-to-date.
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