August 28, 2024 /SemiMedia/ — Infineon Technologies AG has announced the resolution of a long-standing legal dispute with the insolvency administrator of its former subsidiary, Qimonda AG. The German chipmaker has agreed to pay approximately €753.5 million (around $837 million) to bring an end to the litigation that has been ongoing since 2010.

This protracted legal battle stemmed from Qimonda's insolvency in 2009, following the global financial crisis and a sharp decline in memory chip prices. The insolvency administrator had initially sought €3.35 billion, alleging that Infineon had offloaded its memory chip business to Qimonda at an inflated price. After years of negotiations, both parties have reached a settlement that will see Infineon utilizing its set-aside provisions to cover the majority of the payment. The remainder, however, will impact Infineon's earnings and cash flow from discontinued operations.

With this settlement, all legal claims and disputes between Infineon and the Qimonda insolvency administrator are now resolved. The conclusion of Qimonda’s insolvency proceedings is expected by 2025, at which point creditors are anticipated to receive substantial dividends.

This resolution is viewed as a strategic move by Infineon to streamline its operations and focus on future growth. It also alleviates concerns regarding the company’s financial stability, positioning Infineon favorably as it continues to navigate the competitive semiconductor market.