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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteNo. GlobalFoundries did not get IBM’s lawsuit dismissed. It asked a New York court to strike IBM’s demand for a jury trial, arguing that the companies’ agreements waived that right. The trial court granted the motion, and New York’s Appellate Division, First Department affirmed as to IBM’s fraudulent-inducement and promissory-estoppel claims. IBM and GlobalFoundries later announced that they had settled all litigation matters on January 2, 2025.
What did GlobalFoundries ask the court to do?
IBM filed its New York lawsuit against GlobalFoundries U.S. Inc. on June 8, 2021. The case included claims for fraudulent inducement, breach of several agreements and promissory estoppel, arising from the companies’ business relationship and agreements concerning semiconductor development, manufacturing and supply.
After discovery, IBM sought a jury trial. GlobalFoundries moved to strike that demand, relying on jury-waiver language in the agreements. The New York Supreme Court granted the motion in an order entered May 14, 2024. That was a procedural ruling about how covered claims would be tried—not a decision dismissing IBM’s claims or deciding that the alleged conduct had or had not occurred.
Why did the First Department affirm the ruling?
On December 19, 2024, the Appellate Division, First Department affirmed the order as to IBM’s fraudulent-inducement and promissory-estoppel claims. It concluded that the parties’ broad contractual jury waivers covered those claims. The court’s published disposition says: “Order, Supreme Court, New York County, entered May 14, 2024, affirmed, without costs.”
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The ruling should not be described as a dismissal of IBM’s lawsuit. It concerned IBM’s jury demand and the effect of the contractual waivers on the specified claims. IBM’s allegations remained allegations; the appellate decision was about the waiver, not a finding that GlobalFoundries committed fraud or breached an agreement.
What was the business relationship behind IBM’s claims?
The appellate opinion describes discussions from 2013 to June 2015 about a collaborative venture. IBM transferred its microelectronics business, including technology, engineers and employees, along with funding. GlobalFoundries was to develop, manufacture and supply advanced semiconductor chips. The opinion recounts the following transaction figures:
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| Figure | What the appellate opinion says it concerned |
|---|---|
| $1.5 billion — New York Supreme Court, Appellate Division, First Department, 2024 | Funding transferred by IBM as part of the arrangement involving its microelectronics business and GlobalFoundries’ chip commitments. |
| $500 million — New York Supreme Court, Appellate Division, First Department, 2024 | IBM’s second installment, paid in December 2016. |
| $250 million — New York Supreme Court, Appellate Division, First Department, 2024 | IBM’s third installment, paid in December 2017. |
These are transaction and installment figures recounted in the 2024 appellate opinion; they are not reported settlement payments. IBM alleged that it would not have entered the arrangement without GlobalFoundries’ representation of a long-term strategic and financial commitment to high-performance chips. That is IBM’s allegation, not a court finding. GlobalFoundries’ position, as recounted by the court, was that the detailed written agreements set out the parties’ commitments.
How did the separate trade-secret dispute differ?
In April 2023, GlobalFoundries separately announced that it had sued IBM, alleging trade-secret misappropriation. GlobalFoundries asserted that IBM disclosed its intellectual property and trade secrets to partners including Intel and Rapidus. Those claims were GlobalFoundries’ allegations in a separate action, not findings in the ruling on IBM’s jury demand.
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What happened after the jury-waiver ruling?
On January 2, 2025, IBM and GlobalFoundries announced that they had settled their ongoing lawsuits and resolved all litigation matters between them, including disputes involving breach of contract, trade secrets and intellectual property. They said the settlement terms were confidential; neither a settlement amount nor a particular remedy was disclosed in the announcement.
GlobalFoundries CEO Thomas Caulfield said, “We are pleased to have reached a positive resolution with IBM, and we look forward to new opportunities to build upon our long-standing partnership to further strengthen the semiconductor industry.” IBM Chairman and CEO Arvind Krishna said, “Resolving these disputes is a significant step forward for our companies and will allow us to both focus on future innovations that will benefit our organizations and customers.”
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