GlobalFoundries sues IBM for 'unlawfully' sharing intellectual property, trade secrets
Sundry Photography

GlobalFoundries (NASDAQ:GFS) said on Wednesday it had sued IBM (NYSE:IBM) for "unlawfully" sharing intellectual property and trade secrets after IBM sold its microelectronics business to GlobalFoundires in 2015.
In a statement, GlobalFoundries (GFS) alleged IBM (IBM) shared information with Japanese semiconductor consortium Rapidus and Intel (NASDAQ:INTC) and that IBM is "unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits."

Rapidus was created in August 2022 and is backed by a number of companies, including Sony, Toyota and SoftBank.
GlobalFoundries (GFS) said in its complaint that it is asking for compensatory and punitive damages and an injunction to stop IBM (IBM) from "further unlawful disclosure and use of GFâs trade secrets."
The company also said IBM (IBM) is going after GlobalFoundries (GFS) engineering talent at its manufacturing facility, located near the Albany NanoTech Complex. IBM (IBM) is based in Armonk, New York, roughly two hours away from Albany.
Earlier this month, it was reported that Rapidus was in talks to receive additional subsidies from the Japanese government for an advanced chip plant in the country.
GlobalFoundries (GFS) shares sank more than 2% in early Wednesday trading, while IBM (IBM) and Intel (INTC) fell 1.3% and 1.9%, respectively, amid a broader market sell-off.
IBM (IBM) is slated to report first-quarter results after the close of trading on Wednesday.