GlobalFoundries And IBM Settle Lawsuits Over Contract And Trade Secrets
The entities expect to find new opportunities for collaboration;
By: : Daniel
Update: 2025-01-02 18:00 GMT
GlobalFoundries And IBM Settle Lawsuits Over Contract And Trade Secrets
The entities expect to find new opportunities for collaboration
GlobalFoundries and IBM have announced settling lawsuits claiming that the former breached a contract with IBM and that the computer giant misused the chipmaker's trade secrets.
In a joint statement, the companies stated that the terms of settlement were confidential and those would allow them to "explore new opportunities for collaboration."
In 2015, GlobalFoundries bought IBM's semiconductor plants.
However, in 2021, IBM sued the Malta, New York-based company in the state court for allegedly breaking a $1.5 billion contract to make high-performance chips for IBM.
Meanwhile, GlobalFoundries, majorly owned by Abu Dhabi's sovereign wealth fund Mubadala, had separately sued Armonk, IBM in New York federal court in 2023. It was for allegedly misappropriating its chipmaking trade secrets and sharing them with Intel and Japanese consortium Rapidus during partnerships with the two companies.
In November last, the US Department of Commerce had awarded GlobalFoundries $1.5 billion to expand its semiconductor production in New York and Vermont.