Computing giant IBM has settled its lawsuits with semiconductor manufacturer GlobalFoundries.
In the lawsuits, IBM accused the chipmaker of breaching a contract with it, while GlobalFoundries alleged the computing giant misused its trade secrets.
Yesterday the companies announced they have reached a settlement in their ongoing lawsuits, resolving all litigation matters, inclusive of breach of contract, trade secrets and intellectual property claims between the two companies.
This settlement marks the end of an ongoing legal dispute and allows the companies to explore new opportunities for collaboration in areas of mutual interest, the companies say in a joint statement.
According to the firms, the details of the settlement are confidential and both parties have expressed satisfaction with the outcome.
"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," says Dr Thomas Caulfield, president and CEO of GlobalFoundries.
“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,” says Arvind Krishna, chairman and CEO of IBM.
Reuters reports that GlobalFoundries bought IBM's semiconductor plants in 2015. IBM sued the Malta, NY-based company in New York state court in 2021 for allegedly breaking a $1.5 billion contract to make high-performance chips for IBM.
It adds that GlobalFoundries, which is majority owned by Abu Dhabi's sovereign wealth fund Mubadala, separately sued Armonk, New York-based IBM in New York federal court in 2023 for allegedly misappropriating its chipmaking trade secrets and sharing them with Intel and Japanese consortium Rapidus during partnerships with the two companies.
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