GloFo sues IBM over Intel, Rapidus partnerships

Partners | April 23, 2023

By Peter Clarke

Chipmaker GlobalFoundries Inc. (New York) has sued IBM claiming the computer company has unlawfully shared chip IP and trade secrets with Japan’s startup chip company Rapidus Inc. and chip giant Intel Corp.

The complaint, filed last week, asserts that IBM unlawfully disclosed intellectual property and trade secrets that became GlobalFoundries’ property after it acquired IBM’s microelectronics business in 2015.

Prior to 2015 and over many years IBM and GlobalFoundries had worked collaboratively in Albany, New York, to develop leading-edge IC manufacturing process technology. GlobalFoundries asserts that the sole and exclusive right to disclose that technology was transferred to GlobalFoundries as part of the 2015 sale.

The potential for disagreement with IBM stems, in part, from the decision Globalfoundries made in 2018 not to pursue leading-edge chip manufacturing (see GloFo rethinks its future, drops 7nm FinFET). That gave rise to a damages claim from IBM for U$2.5 billion and countersuit made in June 2021 (see GloFo sues IBM over $2.5 billion damages claim). Meanwhile IBM has subsequently worked with Samsung with whom it also worked collaboratively on R&D.

Filed in New York

In the latest legal action, filed in federal court in the Southern District of New York, GlobalFoundries asserts that IBM unlawfully disclosed IP and trade secrets to IBM partners including chip giant Intel and Japan’s Rapidus, and by doing so, IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits.

In other words, GlobalFoundries claims that even though is not active at the 7nm node or below, it owns the leading-edge semiconductor IP and trade secrets and not IBM.

GlobalFoundries said that IBM executives had said technology partnerships with Intel and Rapidus were based on decades of technology derived from research conducted at the Albany NanoTech Complex. The foundry said it was also concerned about the extent to which IBM may have disclosed IP and trade secrets beyond these two partnerships.

It is not clear to what degree Intel’s manufacturing process technology depends on the partnership with IBM. Intel has had its own roadmap for FinFET manufacturing processes for many years, although it has been overtaken in recent years by leading foundries TSMC and Samsung. An attempt to re-invigorate Intel’s manufacturing would have been one reason behind the partnership with IBM.

Due diligence?

But the IBM-Rapidus partnership – with backing from the Japanese government and to a lesser extent the US government – relies totally on the so-called IBM 2nm process (see IBM announces first 2nm chip and manufacturing process).

GlobalFoundries is seeking compensatory and punitive damages and injunction against further disclosures.

The company also claimed that IBM has been targeting its engineers for recruitment and that these efforts have accelerated since the IBM/Rapidus announcement in December 2022 (see Consortium forms Rapidus to get Japan back into chip race at 2nm). GlobalFoundries is asking the court to prevent the allegedly unlawful recruitment.

“GF will aggressively defend its investments in technology against those who violate them, as the complaint demonstrates IBM has repeatedly done,” said the company in a statement.