GlobalFoundries And IBM Settle All Litigation Matters, Ending Trade Secrets Battle

GlobalFoundries Inc. GFS and International Business Machines Corporation IBM have announced a settlement resolving all ongoing lawsuits between the two companies, including claims related to breach of contract, trade secrets, and intellectual property.

The settlement, which ends a long-standing legal dispute, allows both companies to explore future collaboration in areas of mutual interest.

The specific terms of the settlement remain confidential, but both parties have expressed satisfaction with the outcome.

In April 2023, GlobalFoundries sued IBM for misappropriation of trade secrets.

GlobalFoundries accused IBM of unlawfully disclosing confidential intellectual property and trade secrets after IBM sold its microelectronics business to GlobalFoundries in 2015.

Also Read: US Stocks To Open Higher In The First Trading Session Of 2025: Analyst Says History Favors Rebound After Year-End Dip

The technology in question had been collaboratively developed by the companies in Albany, New York, with GlobalFoundries receiving the exclusive right to license and disclose the technology following the sale.

GlobalFoundries alleged that IBM shared this technology with its partners, including Intel and Japan's Rapidus, a newly formed advanced logic foundry.

These disclosures allegedly resulted in IBM receiving millions of dollars in licensing income and other benefits, which GlobalFoundries claimed were unjustly obtained.

IBM's executives previously described the Intel and Rapidus partnerships as based on technology developed at the Albany NanoTech Complex, technology that GlobalFoundries asserted IBM had no right to disclose.

Both companies have now moved past the dispute.

Arvind Krishna, CEO of IBM, stated that resolving the disputes is a significant step forward, allowing both companies to focus on future innovations.

Thomas Caulfield, CEO of GlobalFoundries, also welcomed the resolution, expressing eagerness to strengthen the semiconductor industry through renewed collaboration.

Price Action: GFS shares are trading higher by 2.61% to $44.03 at last check Thursday, while IBM shares are trading higher by 0.49% to $220.90.

Image via Shutterstock.

Read Next:

• S&P 500 Scaled A Record 57 All-Time Highs In 2024: Here's What Analysts Think Is In Store This Year