An OGC Primer: Understanding the Custom IC Development and Supply Process to Help Craft Better Agreements

Integrated circuits (commonly known as “chips”) are a core component of virtually every electronic device on the market today. Recent chip supply shortages have impacted companies of all sizes, resulting in the need to forge new partnerships to tackle the long, expensive, and complex process of designing and building custom chips. With the exception of industry giants like Ford and GM (who have invested billions into developing and manufacturing their own chips), most companies will outsource this function to various players in the space, including developers, fabricators, and packaging, assembly and testing houses, relying on legal counsel to document the terms of these arrangements in development and supply agreements.   

Like a custom chip itself, IC development and supply agreements are complicated and require in-house counsel to have a firm grasp of how IC development and production works in real life. In his recent Westlaw Today article, “Building better chip agreements without losing your mind – or your IP,” OGC Partner Don Levy offers 10 tips for negotiating and drafting agreements that will effectively protect IP and minimize risk. In a companion OGC Primer, Don provides a more in-depth review of the technology, nuances and intricate supply chain interdependencies that are involved in both developing and supplying a custom chip. To download the OGC Primer, we invite you to complete the below form:

If you have questions about custom IC development or supply agreements, or issues relating to corporate or commercial technology transactions in general, please reach out to Don Levy at [email protected].

Don Levy is a Partner on OGC’s California-based team. Don is a seasoned transactional and commercial attorney with deep experience in a wide range of technologies, including  Internet/e-commerce, communications (wireless and satellite), semiconductor, software, SaaS, mobile device, market research, and entertainment/media. As a former legal and business executive, Don helps technology companies efficiently and creatively navigate complex legal issues in dynamic environments.