GlobalFoundries, formerly an AMD fab, is suing IBM to escape the $2.5 billion in damages that Big Blue is trying to squeeze out of IBM in the run-up to its initial public offering (IPO). That is the main reason for IBM's latest demand, which the company says is just looking for a "quick payday."

This relates to a 2014 deal between GlobalFoundries and IBM, in which the contract chipmaker agreed to take over some of IBM's old unprofitable fabs for the sum of $1.5 billion and resume some manufacturing. GLOBALFOUNDRIES was then to become the exclusive chipmaker for some of IBM's components in exchange for a sneak peek at IBM's extensive silicon IP.

But then GlobalFoundries gave up chasing rabbit holes in advanced manufacturing processes like Samsung and TSMC and "decided not to pursue IBM's 'failed strategy' and informed IBM in 2018."

But this year, IBM decided it needed to recoup some of its $1.5 billion investment (and, apparently, a little more sugar on top) and wants some compensation from GlobalFoundries, which it claims breached the contract from AMD's former chip manufacturing unit. Some believe that this is just a cynical attempt to squeeze some cash out of GlobalFoundries, a spin-out company with a $30 billion IPO on the horizon.

"This lawsuit stems from what appears to be a misguided and ill-conceived effort by IBM's legal department to extract an exorbitant payment," GlobalFoundries is quoted as saying in the complaint, adding that IBM has been trying to get IBM to supply next-generation chips. GlobalFoundries contributed $1.5 billion to GlobalFoundries, but as soon as GlobalFoundries received the final payment, it completely abandoned IBM and sold the assets from the deal for its own benefit,"

IBM is quoted by Reuters as saying.

This sounds like a hassle, and it doesn't look like anyone will back down anytime soon. But there is a lot of money on the table, not only from the damages in this potential lawsuit between IBM and GlobalFoundries, but also because the expansion of chip manufacturing is now a very important topic.

A massive $52 billion package passed by the U.S. Senate is aimed at bolstering the U.S. semiconductor industry, which is new fertile ground for foundries seeking investment.