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Friday, September 22, 2017
Globalfoundries Asks EU to Probe TSMC


Globalfoundries has reportedly asked European regulators to investigate rival chip foundry TSMC, accusing the competitor of unfair competition. TSMC denies allegations.

According to a report by Reuters, Globalfoundries has claimed to the European Commission that TSMC unfairly uses loyalty rebates, exclusivity clauses and bundled rebates as well as penalties to discourage customers from switching to rivals.

Globalfoundries did not explicitly confirm the Reuters report but said it would support regulatory agencies' probes of the semiconductor industry.

"It's prudent for the regulator to monitor behaviors more closely and Globalfoundries will naturally support regulatory agencies as they take a closer look at this key industrial sector for Europe and the world," a Globalfoundries spokesman said .

"Any allegation that TSMC is engaged in anticompetitive practices is baseless," TSMC said. "What we offer is the best technology and production capabilities."

TSMC says it has has not received any formal notification from any antitrust authorities but that it will collaborate with authorities on requests for information.

The European Commission declined to comment on whether GlobalFoundries had approached the agency.

"Generally, the Commission monitors possible anticompetitive market practices and abusive conduct," a commission spokesperson said in an email. "This includes behavior by operators active in the semiconductor sector."

TSMC is the market leader in the foundry space, with 2016 market share of 59 percent, according to market research firm IC Insights. Globalfoundries is the No. 2 player in the market, with 2016 share of 11 percent.



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