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EU: US chipmaker asks EC to probe Taiwanese manufacturer

By  |  September 21, 2017

US based chipmaker GlobalFoundries has complained to the European Commission that Taiwanese rival TSMC has been abusing loyalty rebates, exclusivity clauses and bundled rebates and penalties in order to prevent customers from changing chipmakers.

TSMC and GlobalFoundries both work in the foundry industry, which is a contract market catering to companies without their own manufacturing plants.

TSMC held 58% of the foundry market it 2016 with GlobalFoundries being the next largest chipmaker.

GlobalFoundries claims that the abuses by TSMC go back several years and have impacted GlobalFoundries’ ability to compete.

A TSMC spokeswoman denied the allegations saying, “Our customers always have the freedom to choose, which we respect greatly, and they choose us because of the value we deliver toward their long-term success.

“Any accusation that TSMC threatens or harms customers is absolutely baseless, and we will vigorously defend our hard-earned trust and our most valued reputation.”

Full Content: Reuters

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