SAN JOSE, Calif. Amkor Technology Inc. has agreed to pay $40 million to Fujitsu Ltd. as part of a settlement involving allegedly defective mold compounds for ICs.
As part of a broader settlement agreement reached among Fujitsu, Cirrus Logic Inc. and Sumitomo Bakelite Co., Amkor has agreed to pay the sum in consideration of a release from all claims related to this case.
In addition, Fujitsu will pay Cirrus $25 million to settle all claims between Cirrus, Fujitsu, Amkor, and Sumitomo Bakelite over alleged failure of ICs that Cirrus Logic sold to Fujitsu, Cirrus Logic said Thursday (April 28) (see April 28 story).
In recent times, several chip makers and OEMs filed suit against Amkor over alleged defective mold compounds for ICs. Amkor (Chandler, Ariz.) previously announced resolution of cases involving Philips Semiconductors and Seagate Technology.
Amkor will continue to incur legal expenses in defense of the pending mold compound cases with Maxim and Fairchild International.
"Our decision to enter into the Fujitsu settlement was based on a careful economic evaluation of the circumstances particular to this case, including the size of the damage claims and the potential outcome of a jury trial," said John Boruch, Amkor's president and chief operating officer, in a statement.
Meanwhile, in connection with this settlement, Amkor will record a charge of $40 million for the three months ended March 31.