- Mubadala-owned chipmaker
- Joint statement with computer giant
- Terms of deal confidential
GlobalFoundries, the chipmaker majority owned by Abu Dhabi’s sovereign wealth fund, Mubadala, and IBM said on Thursday they had settled their duelling lawsuits.
GlobalFoundries was accused of breaching a contract with IBM, and the computer company was alleged to have misused the chipmaker’s trade secrets.
The companies said in a joint statement that the terms of the settlement were confidential and would allow them to “explore new opportunities for collaboration.”
GlobalFoundries, which has its headquarters in Malta, New York, bought IBM’s semiconductor plants in 2015.
IBM sued the company in New York state court in 2021 for allegedly breaking a $1.5 billion contract to make high-performance chips for IBM.
GlobalFoundries, which was privately owned by Mubadala until an IPO in 2021, separately sued IBM in New York federal court in 2023 for allegedly misappropriating its chipmaking trade secrets and sharing them with Intel and the Japanese consortium Rapidus during partnerships with the two companies.
An Intel spokesperson declined to comment on the settlement. Spokespeople for Rapidus did not immediately respond to a request for comment.
The US Commerce Department awarded GlobalFoundries a $1.5 billion subsidy in November to expand its semiconductor production in New York and Vermont.