Investing
GlobalFoundries sues IBM, says trade secrets were unlawfully given to Japan’s Rapidus
© Reuters. A screen displays the company logo for semiconductor and chipmaker GlobalFoundries Inc. during the company’s IPO at the Nasdaq MarketSite in Times Square in New York City, U.S., October 28, 2021. REUTERS/Brendan McDermid
By Jane Lanhee Lee
OAKLAND, California, (Reuters) -Chip manufacturer GlobalFoundries Inc said on Wednesday it had filed a lawsuit against International Business Machines (NYSE:) Corp, accusing it of unlawfully sharing confidential intellectual property and trade secrets.
New York-based GlobalFoundries said in its complaint that IBM had shared IP and trade secrets with Rapidus, a new state-backed Japanese consortium that IBM is working with to develop and produce cutting-edge two-nanometre chips.
It also asserted that IBM had unlawfully disclosed and misused its IP with Intel Corp (NASDAQ:), noting that IBM had announced in 2021 it would collaborate with Intel on next-generation chip technology.
“IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits,” GlobalFoundries said in a statement.
IBM did not reply to Reuters’ request for comment. Intel declined to comment and Rapidus was not immediately available.
The complaint said GlobalFoundries and IBM had collaboratively developed technology over decades in Albany, New York, and the exclusive right to license and disclose the technology was sold to GlobalFoundries in 2015.
GlobalFoundries is seeking compensatory and punitive damages as well as an injunction against IBM to stop using the trade secrets. It also said IBM has been recruiting GlobalFoundries’ engineers – efforts which have accelerated since the Rapidus partnership was announced in December 2022, and asked the court to order an end to those recruitment efforts.
Rapidus, which counts Sony (NYSE:) Group Corp, NEC Corp and other major tech firms as consortium members, is of national strategic importance and has been hailed in Japan as a symbol of U.S.-Japan cooperation.
Japan long ago lost its lead in chip manufacturing, particularly in advanced semiconductors, and is now rushing to catch up and ensure its carmakers and information technology companies do not run short of the key component.
This is the second time GlobalFoundries has sued IBM since buying IBM’s semiconductor plants in 2015.
In 2021, GlobalFoundries asked a judge to rule that it did not violate a contract with IBM which claims it is owed $2.5 billion in damages. That litigation is still ongoing, according to a GlobalFoundries spokesperson.
Read the full article here
-
Side Hustles6 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Make Money6 days ago
Here’s the Typical American’s Income at Every Age. How Do You Compare?
-
Investing6 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Investing6 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks
-
Side Hustles4 days ago
How Your Body Language Can Help Win a Disagreement
-
Passive Income4 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles5 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Passive Income6 days ago
CVS Is Laying Off Thousands in Cost Cutting Initiative