IBM, GlobalFoundries in Breach-of-Contract Spat
By Brian Santo, EETimes (June 8, 2021)
IBM is suing GlobalFoundries for breach of contract and is asking for $2.5 billion in damages. IBM made GlobalFoundries aware of the suit, but informed EE Times it hasn’t filed it in court yet, and so is not yet prepared to share it publicly. GlobalFoundries has already filed a petition with the New York State Supreme Court to dismiss the pending suit as meritless.
Back in 2014, IBM was trying to get out of the commercial semiconductor production business. It was shopping some of its aging fabs, but failed to find any buyers, and ended up paying GlobalFoundries $1.5 billion essentially to take them. The two agreed GF would complete the 14 nm IC production process IBM had been working on (which GF did). GlobalFoundries would then supply IBM with 14-nm chips (and so it did), and GF would simultaneously work on the next node. The next node was supposed to be 10nm, but given the competitive situation in the IC manufacturing business, GF decided to skip 10nm and go directly to 7nm. GF says IBM agreed with this decision.
![]() |
E-mail This Article | ![]() |
![]() |
Printer-Friendly Page |
Related News
- GlobalFoundries and IBM Announce Settlement and Resolution of All Litigation Matters
- GlobalFoundries Files Lawsuit Against IBM to Protect its Intellectual Property and Trade Secrets
- IBM, GLOBALFOUNDRIES Enhance Si2 Unified Power Model Standard
- GLOBALFOUNDRIES Delivers Custom 14nm FinFET Technology for IBM Systems
- Will Globalfoundries be More Successful than IBM with Its Foundry Business?
Breaking News
- intoPIX Powers Ikegami's New IPX-100 with JPEG XS for Seamless & Low-Latency IP Production
- Tower Semiconductor and Alcyon Photonics Announce Collaboration to Accelerate Integrated Photonics Innovation
- Qualcomm initiates global anti-trust complaint about Arm
- EnSilica Agrees $18m 7 Year Design and Supply ASIC Contract
- SiliconIntervention Announces Availability of Silicon Based Fractal-D Audio Amplifier Evaluation Board
Most Popular
- Qualcomm initiates global anti-trust complaint about Arm
- Siemens acquires Altair to create most complete AI-powered portfolio of industrial software
- Alphawave Semi Reveals Suite of Optoelectronics Silicon Products addressing Hyperscaler Datacenter and AI Interconnect Market
- EnSilica Agrees $18m 7 Year Design and Supply ASIC Contract
- Rapidus Announces Strategic Partnership with Quest Global to Enable Advanced 2nm Solutions for the AI Chip Era