IBM Says Semiconductor Maker Owes it $2.5B

GlobalFoundries detailed the demand in a lawsuit filed against IBM on Monday, Reuters reports.The trouble began more than six years ago, when GlobalFoundries agreed to purchase IBM’s chip business for $1.5 billion.IBM claims the transaction required GlobalFoundries to continue making chips for IBM, but instead, the company abandoned advanced chipmaking technology in 2018 citing exorbitant research and development costs.IBM subsequently turned to Samsung for its chips for more than two years before sending a letter to GlobalFoundries in April alleging contract violations. IBM threatened to sue and called for GlobalFoundries to pay $2.5 billion in damages.IBM said in a statement that GlobalFoundries abandoned their agreement as soon as the final payment was received, then sold off assets from the transaction for its own benefit.