Semiconductors Born in the USA?

The buzz around AI and advanced electronics continues to gather pace and, as a consequence, the importance of securing access to the most advanced semiconductor chips is a hot topic. However, most countries do not host the state of the art foundries required to produce the best chips. Because of this, there has been an effort in recent times by the US and EU, for example, to set up or improve domestic manufacturing capability, which takes time and has associated risks.

I found it interesting to follow some of the recent news coverage around Intel, which unlike some competitors, designs and manufactures chips. Intel has reportedly been the subject of separate bids for its foundry and other parts of the business, with the US Government reportedly keen to secure manufacturing capability in this space.

As a Patent Attorney, I was intrigued about the report that another semiconductor company, AMD, may have a veto power over any deal to sell Intel's business due to a cross-licensing agreement. In the semiconductor space, patents may protect innovative circuit designs, layouts, fabrication processes among other things, and when used for cross-licensing may allow for access to technology to be shared as appears to be the case here, but of course this may complicate matters when it comes to some commercial transactions when third parties are involved.

I will be following developments closely to see if any deal is struck, and if there are further updates about what appears to be a complex IP position. However, the take home message here is that those that adopt a robust IP portfolio may have more commercial levers available than those that do not.