Globalfoundries, IBM settle long-running legal disputes

News | January 2, 2025

By Peter Clarke

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Globalfoundries and IBM have settled all their legal disputes and are looking forward to future collaboration, the companies said in a statement.

The details of the settlement were not disclosed.

Prior to 2015 and over many years IBM and GlobalFoundries had worked collaboratively in Albany, New York, to develop leading-edge IC manufacturing process technology. In 2015 Globalfoundries acquired IBM’s microelectronics business and, it believed, the sole and exclusive right to semiconductor intellectual property.

However, when Globalfoundries opted not to develop leading-edge chip manufacturing in 2018 (see GloFo rethinks its future, drops 7nm FinFET) the potential for disagreement increased.

IBM made a damages claim against Globalfoundries for US$2.5 billion and then a countersuit followed from Globalfoundries against IBM in June 2021. In 2023 Globalfoundries sued IBM over its release of semiconductor IP and trade secrets to Japanese startup Rapidus Inc. and chip giant Intel.

GlobalFoundries also alleged that IBM had tried to poach technical personnel from its Albany NanoTech Complex in New York and was benefitting from license payments unfairly.

GloFo sues IBM over Intel, Rapidus partnerships

“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,” said Thomas Caulfield, CEO of Globalfoundries, in the statement.

“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 organizations and customers,” said Arvind Krishna, chairman and CEO of IBM.