GlobalFoundries, an outstanding member of AMD, is suing IBM for escaping the $ 2.5 billion in damages that Big Blue is trying to get out of it just before its initial public offering (IPO). This, he says, is the main driver of IBM's recent lawsuits, with the company just looking "a fast payday".
This is an agreement between GlobalFoundries and IBM since 2014, where the contract chip maker agreed to take over some old and unprofitable IBM manufacturers for $ 1.5 billion and some manufacturing return. GlobalFoundries would become IBM's exclusive chip maker for some of its parts in exchange for a take a peek at the other company’s extensive silicon IP.
But then GlobalFoundries gave up pursuing people the size of Samsung and TSMC because of the rabbit's advanced production process, "decided not to follow IBM's" failed strategy "and notified IBM in 2018." .
This year, however, IBM has decided that it needs to recoup some of that $ 1.5 billion investment (and obviously add a little more sugar on top) and wants some reward from GlobalFoundries, which claims it breached the contract. Given that GlobalFoundries, the company that came out of AMD’s old chipmaking arm, is about to enter a potentially valued $ 30 billion IPO, there’s the feeling that it’s little more than than a cynical attempt to extract some cash.
"This action stems from what appears to be a misguided and ill-conceived effort by IBM's legal department to try to extract an extravagant payment," GlobalFoundries said in its complaint.
For its part, Reuters quotes IBM stating that "IBM provided $ 1.5 million to GlobalFoundries to supply the next generation of chips and GlobalFoundries absolutely abandoned IBM as soon as the final payment was received and the assets of the agreement were sold for the their own enrichment ".
It looks messy and it doesn’t look like anyone will back down anytime soon. But there is a lot of money on the table, no less important than the damage in this possible lawsuit between IBM and GlobalFoundries, but also with the expanded chipmaking that is such an important topic of conversation right now, there are likely to be subsidies. for anyone to take advantage of them.
The U.S. Senate has approved a huge $ 52 billion package that aims to strengthen the semiconductor industry in the United States, making it a newly fertile ground for investment-seeking foundries.