AEM to settle ‘confidential’ arbitration with US$20 million payment
SEMICONDUCTOR equipment maker AEM Holdings has agreed to pay US$20 million to settle a legal dispute with two American companies – Advantest America and Advantest Test Solutions.
On Friday (Jul 28), mainboard-listed AEM said it would make a first payment of US$9 million in the third quarter, and another US$11 million in Q3 of 2024, using the company’s internal resources.
This will have minimal impact on AEM’s operations, its business strategy or its product offerings, said the company.
It added that the settlement was final and was reached without any findings or admissions of a breach or of liability.
“We decided on the settlement so that we can firmly clarify our competitive position in the market and put this matter behind us,” said AEM chief executive Chandran Nair.
“It does not disrupt our operations, business strategy and our product offerings,” he added.
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While details of the arbitration were not disclosed, AEM said that the terms of its settlement “reaffirm the parties’ prior understanding that the complainants own the specific work product for the 5037 active thermal interposers”.
It added that parties reserve all rights to their other respective intellectual property.
AEM’s announcement of the settlement comes after it announced in February 2022 that the company and two of its subsidiaries were in a “confidential arbitration” which contributed to higher legal and professional fees booked in FY2021.
At the time, the group said its legal advisors in the US advised that the arbitration claims “appear to lack factual and/or legal support” based on their preliminary analysis.
Shares of AEM ended Friday unchanged at S$3.86.
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