Semiconductor Manufacturing International (SMIC), China's largest contract chipmaker, announced on December 9 that it has reached a settlement with Japan's Elpida Memory.
SMIC revealed it entered into an agreement with Elpida to settle all pending arbitration claims and counterclaims relating to the parties' Amended and Restated 200mm Wafer Products Business Agreement dated August 30, 2007.
Based on the settlement, SMIC will pay US$21 million to Elpida. "The company had previously taken a reserve of approximately US$10 million, and with this settlement will incur further expenses of approximately US$11 million," SMIC said in a statement.
SMIC claimed the settlement deal will not have material adverse impacts to its financial conditions.