SAN FRANCISCO — Globalfoundries has asked European regulators to investigate rival chip foundry TSMC, accusing its larger competitor of unfair competition, according to a report by the Reuters news service.
Globalfoundries (Milpitas, Calif.) has claimed to the EU's legislative and regulatory arm, 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, according to the report, which cites an anonymous semiconductor industry source.
A spokesman for Globalfoundries said the company is not surprised to learn that the European Commission is investigating allegedly anti-competitive behavior by TSMC, which has "a virtual lock" on supply.
"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," the spokesman said in an emailed statement.
TSMC did not immediately respond to a request for comment by EE Times.
TSMC is far and away the market leader in the pure play 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, according to research firm.
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