GlobalFoundries and IBM Settle Lawsuit, Resolve All Claims

On January 2, 2025, GlobalFoundries and IBM jointly announced that they have reached a settlement in their ongoing legal dispute, resolving all claims related to breaches of contract, trade secrets, and intellectual property. This resolution brings an end to the protracted legal conflict, allowing both companies to explore new collaborative opportunities in areas of mutual interest.

Before 2015, IBM and GlobalFoundries worked together in Albany, New York, developing cutting-edge IC manufacturing processes. That year, GlobalFoundries acquired IBM's microelectronics business, claiming exclusive rights to its semiconductor intellectual property.

However, tensions began to rise after 2018 when GlobalFoundries decided to discontinue its development of advanced chips below the 10nm node. This decision set the stage for a dispute with IBM. IBM then sought $2.5 billion in damages, leading GlobalFoundries to file a counterclaim against IBM in June 2021.

In April 2023, GlobalFoundries filed a lawsuit against IBM in New York Federal Court, accusing the company of improperly sharing confidential intellectual property and trade secrets. The lawsuit alleged that IBM, after selling its chip business to GlobalFoundries in 2015, disclosed proprietary GlobalFoundries' information to IBM's partners, including Intel and Rapidus, a chip manufacturer backed by the Japanese government.

On December 13, 2023, Rapidus, a Japanese semiconductor foundry, announced a strategic partnership with IBM to develop next-generation 2nm chips. The collaboration will focus on advancing IBM's groundbreaking 2nm node technology, which will be integrated into Rapidus' domestic production facilities in Japan.

Additionally, GlobalFoundries claimed that IBM attempted to poach its engineers from the Albany Nanotech Complex and unfairly benefited from licensing payments. GlobalFoundries emphasized that it held exclusive rights to license and disclose the technology obtained through the 2015 sale.

Regarding the settlement, GlobalFoundries CEO Thomas Caulfield stated, “We are pleased to have reached a positive resolution with IBM. This sets the stage for exploring new opportunities and further strengthening the semiconductor industry based on our longstanding partnership.”

IBM Chairman and CEO Arvind Krishna remarked, “Resolving these disputes is an important step forward for our company, allowing us to focus on future innovations that will benefit both our organization and our customers.”