IBM and GlobalFoundries have struck an agreement to resolve their years-long legal dispute over contract violations and allegations of trade secret misappropriation.

The two corporations announced the settlement in a joint statement, claiming that the contents of the arrangement are confidential. The companies said in a joint statement that the settlement terms were secret and would allow them to "explore new opportunities for collaboration."

However, the deal resolves all remaining litigation between the two parties, including IBM's 2021 lawsuit alleging GlobalFoundries broke a $1.5 billion contract to develop high-performance processors.

GlobalFoundries countersued IBM in 2023, charging the tech behemoth of misappropriating its chipmaking trade secrets and disclosing them to Intel and the Japanese consortium Rapidus.

The settlement brings an end to a lengthy legal battle that had a significant impact on the semiconductor sector. Both companies were pleased with the outcome and expressed a desire to discuss potential future collaborations.

Arvind Krishna, IBM's chairman and CEO, added: "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 organisations and customers."