Courtesy of Benzinga.
TMicroelectronics (NYSE: STM) announced that, on April 5, 2012, it has been ordered to pay approximately $59 million to NXP Semiconductors Netherlands B.V. (NASDAQ: NXPI), following an award from an arbitration tribunal set up according to the rules of the International Chamber of Commerce (“ICC”).
The award concerns a dispute between ST and NXP and relates to a claim by NXP against ST for underloading charges to be included in the price of wafers which NXP supplied to ST’s wireless JV from October 1, 2008 until December 31, 2009.
Although ST is clearly disappointed with the results of this arbitration, which were unexpected, the Company is encouraged by the fact that in its award the ICC Tribunal states that it has chosen not to address certain issues which ST has raised, and that will be part of a second arbitration before the same ICC tribunal. A hearing for this second arbitration is scheduled in June 2012 with a final decision expected during the following twelve months.
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