Shares in GlobalFoundries Inc (NASDAQ:GFS) rose 1.2% after a settlement was reached to resolve ongoing lawsuits with International Business Machines Corp (NYSE:IBM).
All litigation, including potential breach of contract, trade secrets and intellectual property claims between the two companies have now been resolved, GF said in a statement, adding that it allows the companies to "explore new opportunities for collaboration".
Both companies expressed satisfaction with the outcome.
GF chief executive Thomas Caulfield said, "we look forward to new opportunities to build upon our long-standing partnership to further strengthen the semiconductor industry".
IBM boss Arvind Krishna said resolving the 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".
Clients and partners of GlobalFoundries, including AMD, Qualcomm, Lockheed Martin and General Motors all celebrated the $1.5 billion of CHIPS and Science Act funding the company received last year as it is seen as a strategic supplier and key enabler of many high-performance computing products.