IBM and GlobalFoundries Settle Lawsuits Over Contract and Trade Secrets

GlobalFoundries and IBM have reached a confidential settlement in their dueling lawsuits over allegations of contract breaches and trade secret misappropriation, the companies announced in a joint statement Thursday. The settlement will allow the companies to "explore new opportunities for collaboration," as reported by Reuters.

The lawsuits stemmed from GlobalFoundries' 2015 acquisition of IBM's semiconductor plants. In 2021, IBM sued GlobalFoundries in New York state court, alleging that the company violated a $1.5 billion contract to manufacture high-performance chips for IBM. GlobalFoundries, majority-owned by Abu Dhabi's Mubadala, countersued in New York federal court in 2023, accusing IBM of misusing its trade secrets and sharing them with Intel and Rapidus during collaborative projects.

Spokespeople for Intel and Rapidus have not yet responded to requests for comment on the settlement, as reported by Reuters.

This settlement comes shortly after the U.S. Commerce Department awarded GlobalFoundries $1.5 billion in November to expand its semiconductor production facilities in New York and Vermont.