Supply Chain Management

Amkor, Tessera Settle Litigation

19 January 2015

Packaging and test equipment vendor Amkor Technology Inc. Friday (Jan. 16) entered into an agreement with Tessera Inc., a subsidiary of intellectual property and packaging house Tessera Technologies Inc., to settle the outstanding litigation and arbitration proceedings between the two companies.

Under terms of the agreement, Amkor will pay $155 million (in quarterly installments over the next four years) to Tessera that will result in the mutual release and dismissal of all claims related to pending litigation, including the previously awarded judgment of $128.3 million, Amkor said. Furthermore, the agreement will provide opportunities for both companies to collaborate in further technology endeavors.

Tom Lacey, CEO of Tessera, said in a statement that now that the disputes have been settled, the agreement “opens the door for Amkor and Tessera to have technical collaboration discussions on advanced packaging technologies.” Lacey added that such a collaboration could “deliver value to the semiconductor industry through innovation” in development of advanced packaging options.

As a result of the settlement, Tessera said it is raising its 2015 recurring revenue guidance from $195 million to $235 million. Amkor expects an after-tax charge to its fourth quarter of 2014 earnings for most of the total settlement amount.

Questions or comments on this story? Contact

Related links:

IHS Semiconductor Manufacturing

News articles:

Globalfoundries Licenses Amkor’s Wafer Bump Technology

Semtech grabs Cisco-backed Smart Grid Startup

TSMC’s 20nm, 28nm Technology Accounts for 50% of Sales

Video Surveillance Market to Reach $23.6 Billion by 2018

Ericsson Sues Apple Over Licensing Fees

Powered by CR4, the Engineering Community

Discussion – 0 comments

By posting a comment you confirm that you have read and accept our Posting Rules and Terms of Use.
Engineering Newsletter Signup
Get the Engineering360
Stay up to date on:
Features the top stories, latest news, charts, insights and more on the end-to-end electronics value chain.
Weekly Newsletter
Get news, research, and analysis
on the Electronics industry in your
inbox every week - for FREE
Sign up for our FREE eNewsletter