GlobalFoundries and IBM Announce Settlement and Resolution of All Litigation Matters

Rhea-AI Summary

GlobalFoundries (GFS) and IBM have announced a settlement resolving all ongoing litigation matters between the companies, including breach of contract, trade secrets, and intellectual property claims. The confidential settlement, announced on January 2, 2025, marks the end of their legal disputes and opens possibilities for future collaboration in areas of mutual interest.

Both companies' CEOs expressed satisfaction with the outcome, with GF's CEO Dr. Thomas Caulfield highlighting the opportunity to build upon their long-standing partnership to strengthen the semiconductor industry. IBM's CEO Arvind Krishna noted that resolving these disputes will allow both organizations to focus on future innovations beneficial to their companies and customers.

Positive

• Resolution of all legal disputes with IBM, reducing legal risks and associated costs
• Potential for new business collaboration opportunities with IBM
• Elimination of uncertainty regarding litigation outcomes

Negative

• Settlement terms are confidential, creating lack of transparency for investors regarding potential financial impact

Settlement paves the way for potential future collaboration

MALTA, N.Y. and ARMONK, N.Y., Jan. 02, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) and IBM (NYSE: IBM) today announced that the two companies 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 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," said Dr. Thomas Caulfield, president and CEO of GF. 

“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.

About GF  

GlobalFoundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for the automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented and diverse team delivers results with an unyielding focus on security, longevity, and sustainability. For more information, visit www.gf.com. 

©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. 

Forward-looking Information 

This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.   

About IBM

IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.

Media Contact: 
Erica McGill
GlobalFoundries
erica.mcgill@gf.com

Adam Pratt
IBM
arpratt@us.ibm.com

FAQ

What litigation matters were resolved between GlobalFoundries (GFS) and IBM?

The settlement resolved all litigation matters between GFS and IBM, including breach of contract, trade secrets, and intellectual property claims.

When did GlobalFoundries and IBM announce their litigation settlement?

GlobalFoundries and IBM announced their litigation settlement on January 2, 2025.

What are the financial terms of the GFS-IBM settlement?

The financial terms of the settlement between GlobalFoundries and IBM are confidential and were not disclosed in the announcement.

How will the settlement affect future collaboration between GFS and IBM?

The settlement paves the way for potential future collaboration between GFS and IBM in areas of mutual interest, strengthening their existing partnership in the semiconductor industry.

What impact will the IBM settlement have on GFS's business operations?

The settlement allows GFS to focus on future innovations and strengthening the semiconductor industry, while eliminating ongoing legal disputes with IBM.