TSMC rival Globalfoundries has asked Chinese regulators to investigate TSMC for violating antitrust laws according to the report, which cites two unnamed industry sources.
Globalfoundries has told China's National Development and Reform Commission (NDRC) that TSMC has adopted unfair practices to discourage customers from placing orders with others, the report said. This is a similar move to that which is thought to have taken place in Europe (see Report: GlobalFoundries accuses TSMC of unfair selling ).
In Europe TSMC is accused of such actions as: demands for exclusivity in contracts, offers of loyalty rebates, the bundling of sales, and threats of restricting access to TSMC's semiconductor production. While TSMC has about 50 percent of the pure-play foundry market it is said to have 100 percent of the profit made in the industry.
TSMC reportedly responded to Nikkei Asian Review moves to extend the investigation to China. The report quotes Lora Ho, CFO of TSMC, saying: "It is common practice for a complainant alleging antitrust violation to petition the various antitrust regulators in major markets. We will cooperate fully should there be inquiries or requests from regulators regarding any investigation."
Ho added that TSMC believes there is no cause of concern of competition in the semiconductor foundry sector
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