The agreement ends disputes over breach of contract and trade secrets, paving the way for potential future collaboration between the two companies.
IBM and GlobalFoundries (GF) have announced the resolution of their legal dispute, which involved allegations of breach of contract and misuse of trade secrets and intellectual property. In a joint statement, both companies confirmed that the agreement, the details of which remain confidential, resolves all ongoing litigation.
Origin of the Conflict
The disagreement arose following GF’s acquisition of IBM’s semiconductor business in 2015, a transaction in which IBM paid $1.5 billion to transfer the unit. As part of the deal, GF committed to being the exclusive supplier of chips for IBM for the next decade.
However, in 2021, IBM sued GF, alleging that the company failed to fulfill its commitment to develop 7nm chips, a key component for IBM’s products. Subsequently, in 2023, GF filed a counterclaim, accusing IBM of sharing trade secrets and intellectual property with Intel and the Japanese company Rapidus without authorization.
Statements from Executives
GF CEO Dr. Thomas Caulfield expressed his satisfaction with the agreement:
“We are pleased to have reached a positive resolution with IBM and look forward to exploring new opportunities to strengthen the semiconductor industry.”
Meanwhile, IBM CEO Arvind Krishna highlighted:
“Resolving these disputes represents a significant step for our companies, allowing us to focus on future innovations that will benefit our organizations and customers.”
Prospects for Future Collaboration
With the end of the litigation, both companies have expressed interest in exploring areas of common interest. This could include collaborations in the development of advanced semiconductor technologies, a critical sector in digital transformation and global infrastructure.
Other Legal Challenges for GF
The resolution of this dispute comes at a challenging time for GF, which was fined $500,000 by the U.S. Department of Commerce in November 2024 for sending chip components to a Chinese company included on the government’s restricted entity list. Despite this incident, GF has demonstrated strong cooperation with authorities and continues to be a key player in the semiconductor industry.
That same month, GF received $1.5 billion under the CHIPS and Science Act to expand its factory in Malta, New York, consolidating its position as a strategic supplier in the U.S. technology supply chain.
About GlobalFoundries
GlobalFoundries is one of the leading semiconductor manufacturers essential for high-growth industries such as automotive, mobile devices, IoT, and telecommunications. With operations in the U.S., Europe, and Asia, GF is noted for its focus on sustainability, security, and the longevity of its products.
About IBM
IBM is a leader in hybrid cloud solutions and artificial intelligence, providing tools to digitally transform key sectors such as finance, telecommunications, and healthcare. Its innovations in quantum computing and consulting have set new standards in the industry.
via: DCD and Global Foundries