The semiconductor industry sees a resolution as IBM and GlobalFoundries settle their lawsuits. The settlement allows both companies to move forward and potentially explore new opportunities for collaboration.
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| IBM and GlobalFoundries have reached a settlement in their ongoing legal battle. The terms of the agreement are confidential, but both companies will now explore potential avenues for future collaboration. Image: IBM |
Armonk, New York, USA - January 3, 2025:
IBM and GlobalFoundries announced on Thursday that they have reached a settlement in their ongoing legal disputes. The terms of the settlement remain confidential.
The companies will now explore potential avenues for future collaboration.
The lawsuits stemmed from a 2015 agreement where GlobalFoundries acquired IBM's semiconductor manufacturing facilities. In 2021, IBM filed suit against GlobalFoundries, alleging breach of contract related to the production of high-performance chips.
Subsequently, in 2023, GlobalFoundries countersued IBM, accusing the tech giant of misusing its proprietary chipmaking technology. GlobalFoundries claimed IBM shared these trade secrets with Intel and the Japanese consortium, Rapidus.
While Intel declined to comment, Rapidus did not immediately respond to requests for comment.
This settlement comes on the heels of a $1.5 billion subsidy awarded to GlobalFoundries by the U.S. Commerce Department in November to bolster its semiconductor manufacturing capabilities in New York and Vermont.