Infineon Technologies has settled a prolonged legal dispute with the insolvency administrator of Qimonda AG. The semiconductor company announced that an agreement has been reached to settle the proceedings, which have been pending before the Munich I Regional Court since 2010. The insolvency administrator had originally made a claim for approximately 3.4 billion euros plus interest. The settlement agreement now entails a payment of 753.5 million euros. This sum consists of a nominal settlement payment of 800 million euros minus offset amounts from previous contracts.

The Supervisory Board of Infineon agreed to the settlement on Thursday, following the approval from Qimonda AG's creditors' committee and Infineon's executive board. The parties have also agreed to have the settlement judicially determined to definitively resolve all claims of the insolvency administrator against Infineon.

The payment will be made from the company's existing cash reserves and will utilize the provisions established for the legal dispute. The amount exceeding that will impact the result and cash flow from discontinued operations. The aforementioned amounts are understood before tax deductions.

In after-hours trading on the Tradegate platform, Infineon shares reacted with a slight loss of 0.79 percent and were last quoted at 31.85 euros.