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November 30, 2010, 1:46 AM EST
By Jun Yang and Victoria Batchelor
(Updates with comment from Samsung in fourth paragraph.)
Nov. 30 (Bloomberg) -- Applied Materials Inc., the world’s largest maker of chipmaking equipment, agreed to sell gear to Samsung Electronics Co. at a discount for three years as part of an accord to avoid lawsuits related to industrial espionage.
Santa Clara, California-based Applied Materials will provide “volume-based rebates” on purchases of semiconductor products by Samsung and its affiliates, the U.S. company said in a statement yesterday. The agreement started Nov. 1.
South Korean prosecutors charged 10 employees of Applied Materials in connection with leaks of Samsung’s chip-making technologies to smaller rival Hynix Semiconductor Inc. through the equipment maker for more than four years, the Seoul Eastern District Prosecutors’ Office said Feb. 3. No charges were brought against the companies. Applied Materials said in February that its former South Korea head was among those indicted.
Samsung has “agreed to reconcile with Applied Materials related to technology leaks,” Nam Ki Young, a spokesman at the Suwon, South Korea-based company, said by telephone, declining to provide further details because they’re confidential.
The agreement does not affect criminal charges against individuals, including the ongoing proceedings against the current and former employees at Applied Materials’ South Korean branch pending in the Seoul Eastern District Court, the statement said.
Link to Statement:{NSN LCOH5G3PWT1C }
--Editors: Suresh Seshadri, Garry Smith.
To contact the editor responsible for this story: Victoria Batchelor at vbatchelor@bloomberg.net
To contact the reporter on this story: Jun Yang in Seoul at jyang180@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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(Updates with comment from Samsung in fourth paragraph.)
Nov. 30 (Bloomberg) -- Applied Materials Inc., the world’s largest maker of chipmaking equipment, agreed to sell gear to Samsung Electronics Co. at a discount for three years as part of an accord to avoid lawsuits related to industrial espionage.
Santa Clara, California-based Applied Materials will provide “volume-based rebates” on purchases of semiconductor products by Samsung and its affiliates, the U.S. company said in a statement yesterday. The agreement started Nov. 1.
South Korean prosecutors charged 10 employees of Applied Materials in connection with leaks of Samsung’s chip-making technologies to smaller rival Hynix Semiconductor Inc. through the equipment maker for more than four years, the Seoul Eastern District Prosecutors’ Office said Feb. 3. No charges were brought against the companies. Applied Materials said in February that its former South Korea head was among those indicted.
Samsung has “agreed to reconcile with Applied Materials related to technology leaks,” Nam Ki Young, a spokesman at the Suwon, South Korea-based company, said by telephone, declining to provide further details because they’re confidential.
The agreement does not affect criminal charges against individuals, including the ongoing proceedings against the current and former employees at Applied Materials’ South Korean branch pending in the Seoul Eastern District Court, the statement said.
Link to Statement:{NSN LCOH5G3PWT1C }
--Editors: Suresh Seshadri, Garry Smith.
To contact the editor responsible for this story: Victoria Batchelor at vbatchelor@bloomberg.net
To contact the reporter on this story: Jun Yang in Seoul at jyang180@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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