By Blake Brittain
(Reuters) -GlobalFoundries and IBM (NYSE:IBM) said on Thursday they have settled dueling lawsuits in which GlobalFoundries (NASDAQ:GFS) was accused of breaching a contract with IBM and the computer giant was alleged to have misused the chipmaker's trade secrets.
The companies said in a joint statement the terms of the settlement were confidential and would allow them to "explore new opportunities for collaboration."
GlobalFoundries bought IBM's semiconductor plants in 2015. IBM sued the Malta, N.Y.-based 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 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 (NASDAQ:INTC) and 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 U.S. Commerce Department awarded GlobalFoundries a $1.5 billion subsidy in November to expand its semiconductor production in New York and Vermont.