Tech giant IBM and GlobalFoundries have announced a settlement, resolving all litigation matters, including breach of contract, trade secrets, and intellectual property claims.
The lawsuits alleged that GlobalFoundries breached a contract with IBM, while IBM was accused of misusing GlobalFoundries’ trade secrets.
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GlobalFoundries acquired IBM’s semiconductor plants in 2015.
In 2021, IBM filed a lawsuit against the company in New York state court, accusing it of breaching a $1.5bn contract to manufacture high-performance chips.
In 2023, GlobalFoundries responded with a separate lawsuit in New York federal court, claiming IBM misappropriated its chipmaking trade secrets and shared them with Intel and the Japanese consortium Rapidus during collaborations with both companies.
The latest settlement concluded the legal disputes between the two companies, which will allow them “to explore new opportunities for collaboration in areas of mutual interest,” a GlobalFoundries statement read.
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By GlobalDataIBM and GlobalFoundries did not disclose the financial terms of the settlement while both parties expressed satisfaction with the resolution.
IBM chairman and CEO Arvind Krishna said: “Resolving these disputes is a significant step forward for our companies and will allow us to both focus on future innovations that will benefit our organisations and customers.”
A manufacturer of essential semiconductors used globally in various sectors, GlobalFoundries delivers “more power-efficient, high-performance” products.
The company caters to markets such as automotive, smart mobile devices, the Internet of Things, and communications infrastructure.
It has manufacturing presence across the US, Europe, and Asia.
GlobalFoundries was privately owned by Mubadala until it went public in 2021.
GlobalFoundries president and CEO Dr Thomas Caulfield said: “We are pleased to have reached a positive resolution with IBM, and we look forward to new opportunities to build upon our long-standing partnership to further strengthen the semiconductor industry.”
In December 2024, IBM agreed to settle a patent lawsuit with mobile game maker Zynga after securing a $45m jury verdict earlier.
