Globalfoundries argues with IBM over its inheritance, the former factories and IP. Globalfoundries took over $ 1.5 billion. IBM accuses the former partner of having withdrawn after paying the last installment of this sum. Globalfoundries now wants to let a court decide.
In 2014, Globalfoundries took over IBM's factories and received another $ 1.5 billion from IBM. Linked to this, however, was an agreement to build chips for IBM for another ten years. At first it looked like a good deal, but Globalfoundries had to accept setbacks after a while and ultimately fit in with the 7 nm production. They withdrew from the race for high-end chips in 2018, so IBM had to look for a new paver for future solutions and ultimately went to Samsung. To this day, Globalfoundries has been manufacturing based on the older 14 nm technology, while IBM is offering Power10 chips in 7 nm this year.
IBM accuses Globalfoundries of breach of contract
IBM accuses Globalfoundries of having made the dust immediately after paying the 1.5 billion for new technologies and the operation of the factories. The allegation even goes so far that they accuse Globalfoundries of having ultimately enriched themselves with IBM technology.
IBM is likely to target the various sales of Globalfoundries in recent times, but especially those of Fab 10 in East Fishkill, around 60 kilometers north of New York City, which was once IBM's former parent plant before it was taken over by Globalfoundries in 2014 has been. In 2019, it was sold to ON Semiconductor for $ 430 million. Only three months earlier, Globalfoundries had sold another 300 mm wafer factory.
IBM contributed $ 1.5B to Global Foundries to supply the next generation of chips, and Global Foundries utterly abandoned IBM as soon as the final payment was received and sold off assets from the deal for its own enrichment
IBM
IBM is now demanding 2.5 billion US dollars in compensation for non-performance of the contracts. Understandably, Globalfoundries sees it the other way around, but first complains about the time it took IBM to start the lawsuit. The further statements by Globalfoundries explain that IBM lacks any explanation for the lawsuit and has so far only issued threats.
[IBM] went silent for nearly two-and-a-half years after the changes in 2018, but then in April of this year sent Global Foundries a letter alleging that the chipmaker had violated its contract.
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Other than threatening to sue unless it capitulated to its demands, IBM has yet to provide any substantive explanation as to its claims
Globalfoundries
A court in New York should now decide whether Globalfoundries violated the contracts with IBM or not.