The settlement between IBM and GlobalFoundries has addressed concerns about the use of Lapidus technology and created new hope for semiconductor production in Japan.
🟦 What is the impact of the settlement between IBM and semiconductor foundry GF on Japan semiconductors?
A lawsuit between IBM and GlobalFoundries (GF), a major semiconductor contract manufacturer, has been settled. GF was suing IBM for misappropriation of intellectual property and trade secrets, but the settlement has settled all legal issues between the two parties.
Timeline to settlement
- 2009
- GF was spun off from AMD and established as a semiconductor foundry company.
- 2015
- IBM transfers its semiconductor manufacturing division to GF.
- GF received $1.5 billion to provide 14nm technology for IBM Power and z processors, as well as the development of 10nm and sub-10nm technologies.
- 2018
- GF discontinued the development of technologies after the 7nm process.
- IBM switched suppliers to Samsung, and the relationship between GF and IBM deteriorated.
- 2019
- GF sells semiconductor factory transferred from IBM to onsemi and ASIC design division to Marvell
- 2021
- IBM sues GF in New York State Court.
- GF seeks $2.5 billion in damages for failing to meet its contractual obligations.
- April 2023
- GF sues IBM in federal court in New York.
- IBM alleges that it unfairly disclosed GF’s technology to Lapidus and Intel.
- Seek damages and an injunction against the use of trade secrets.
- January 3, 2024
- GF and IBM announce a settlement. The two companies will resolve all litigation issues and will keep details such as financial terms private under confidentiality.
🟦 Why is this reconciliation important?
GF alleged that IBM had fraudulently shared its technology with Lapidus in Japan and Intel in the United States. This technology sharing was problematic, and if the litigation dragged on, it could have a negative impact on Lapidus’ production plans. However, this time, the two companies have reached an amicable settlement, which has dispelled these concerns.
🟦 Summary
The settlement between IBM and GF removed obstacles for Japan’s Lapidus to leverage IBM technology. This progress will provide a tailwind for domestic advanced semiconductor production and is an important step toward enhancing Japan’s technological competitiveness.
The good news is that the long-running legal battle between GF and IBM has finally been resolved. Considering that GF receives government subsidies, it may have been aimed at an early resolution in anticipation of a change in the U.S. administration. As a result, it is reassuring that the impact on Lapidus seems to be avoidable.
