Taiwanese foundry TSMC said that it has settled with Chinese foundry SMIC after a court ruled last week that the latter stole the former's trade secrets.
Under the settlement agreement, SMIC will make cash payments of $200 million - that's on top of $135 million already paid to TSMC in a previous court case.
The two companies will also terminate a cross licensing agreement they had in place since 2005.
Morris Chang, chairman of TSMC and generally considered the grandfather of the semiconductor foundry business, said: "We are pleased to have amicably resolved all of our pending litigation with SMIC in California and Beijing and to have fully protected TSMC's valuable trade secrets and technologies. We believe the settlement serves the best interests of TSMC and our shareholders."