IBM, GlobalFoundries settle lawsuits over contract, trade secrets

By Blake Brittain

GlobalFoundries (NASDAQ:GFS ) and IBM (NYSE:IBM ) said on Thursday that they have settled dueling lawsuits claiming that GlobalFoundries breached a contract with IBM and that the computer giant misused the chipmaker's trade secrets. 

The companies said in a joint statement that the terms of the settlement were confidential and would allow them to "explore new opportunities for collaboration."

GlobalFoundries bought IBM's semiconductor plants in 2015. IBM sued the Malta, N.Y.-based company in New York state court in 2021 for allegedly breaking a $1.5 billion contract to make high-performance chips for IBM.

GlobalFoundries, which is majority owned by Abu Dhabi's sovereign wealth fund Mubadala, separately sued Armonk, N.Y.-based IBM in New York federal court in 2023 for allegedly misappropriating its chipmaking trade secrets and sharing them with Intel (NASDAQ:INTC ) and Japanese consortium Rapidus during partnerships with the two companies.



Spokespeople for Intel and Rapidus did not immediately respond to requests for comment on the settlement.

The U.S. Commerce Department awarded GlobalFoundries $1.5 billion in November to expand its semiconductor production in New York and Vermont.

Source: Investing.com