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.
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