Global Foundaries and IBM are locking horns over a deal made in 2014

GlobalFoundaries, a popular semiconductor manufacturer, has locked horns with tech giant IBM over a dispute for over $2 billion from a deal made in 2014. The semiconductor manufacturer is now gearing for an IPO of stock, all set to generate more than $30 billion. IBM has stated that GlobalFoundaries abandoned the deal as soon as the payment of $1.6 billion was made back in 2014. According to the deal, GlobalFoundaries had to deliver next-gen microchips to IBM. However, recently GlobalFoundaries had filed a lawsuit against the Big Blue, citing that it did not violate any part of the agreement.

GlobalFoundaries has stated that the tech giant has not yet taken any action against the company, and it is just providing baseless threats. Back in 2014, GlobalFoundaries had acquired the chip manufacturing segment of IBM, and as a part of the deal, the company has to continue the production of new chip-making technology. This move was, however, dropped in 2018. GlobalFoundaries went silent for more than two years following the changes made in 2018, and then in April, IBM has sent a letter to GlobalFoundaries stating that the company has breached the contract. According to GlobalFoundaries, IBM is yet to provide a strong explanation from its side for the recent claims.