Adeia Inc. (NASDAQ:ADEA) shares rose 5.7% on Monday following the announcement of a multi-year licensing agreement with Advanced Micro Devices. Under the agreement, AMD will obtain access to Adeia's semiconductor intellectual property portfolio, and the arrangement also resolves all outstanding litigation between the two companies. Adeia did not disclose the financial terms of the deal.
The agreement covers Adeia's intellectual property across several areas of semiconductor technology. Adeia's portfolio includes IP related to hybrid bonding, semiconductor packaging and semiconductor processing technologies. The company said it has developed semiconductor innovations over the past 30 years and licenses its technology to semiconductor companies around the world.
"We are pleased to reach this agreement with AMD, a global leader in high-performance computing and advanced semiconductor solutions," Paul E. Davis, chief executive officer of Adeia, commented. "Resolving our disputes allows both companies to move forward and creates an opportunity for exploring future collaborations on advanced semiconductor technologies."
Adeia was described in its announcement as a technology company that develops solutions for the semiconductor and media industries. The licensing arrangement grants AMD access to Adeia's comprehensive semiconductor IP portfolio, though the announcement did not break out licensing fees, royalty rates or other monetary details.
The settlement of litigation between the two companies was stated explicitly in the announcement. The resolution removes the outstanding legal disputes as a current obstacle to cooperation, while the licensing agreement establishes a formal channel for AMD to use Adeia's IP.
Sectors impacted
- Semiconductor industry
- Technology and media sectors
This report presents the facts released by Adeia and reflects the information available in the company announcement. The financial terms of the arrangement remain unspecified in the public disclosure.